Playtech’s B2B Growth Powers Strong H1 2024 Performance

Playtech has delivered an impressive performance in the first half of 2024, reporting an 11% growth in adjusted EBITDA to €243 million. This surge was primarily driven by the company’s thriving B2B business, which contributed significantly to the overall financial results. Furthermore, the sale of Playtech’s Italian sports betting subsidiary, Snaitech, to Flutter Entertainment for €2.3 billion stands as a major strategic move in the company’s plan to focus on its core B2B operations.

For the period ending June 30, 2024, Playtech’s total revenue increased by 5% year-on-year to €906.8 million. The B2B division played a central role in this growth, with revenue jumping by 14% to €382.2 million. This rise was fueled by strong performances across various regions, especially in the Americas, where revenue shot up by 42%. Key partnerships, including those with Caliplay, Wplay in Colombia, and Parx in the US, significantly boosted results in this market.

Playtech’s CEO, Mor Weizer, expressed confidence in the company’s growth trajectory, stating, “We’ve executed our strategy to grow and improve the B2B business, delivering broad-based growth with strong contributions across our key markets.”

While the B2B sector thrived, Playtech’s B2C division remained stable, reporting flat revenue of €532.4 million. The Italian brand Snaitech, although maintaining its market position, saw a 1% decline in revenue to €483.6 million due to customer-friendly sporting results earlier in the year. Despite this dip, Snaitech continued to perform solidly, underscoring the strength of Playtech’s broader operations.

Playtech’s decision to sell Snaitech to Flutter Entertainment marks a significant shift in its strategic focus. The sale, valued at €2.3 billion, is expected to close by the second quarter of 2025. Playtech aims to return between €1.7 billion and €1.8 billion from the sale proceeds to shareholders through a special dividend. This transaction represents a substantial return on Playtech’s initial investment in Snaitech, which it acquired in 2018 for €846 million.

Commenting on the sale, Weizer stated, “A couple of weeks ago, we announced the sale of Snaitech to Flutter for €2.3 billion and our plan to return €1.7-1.8 billion to shareholders. Snaitech has been a key part of Playtech’s growth in recent years and the team delivered another solid performance in the first half.”

This move will allow Playtech to focus more on its B2B business, with the company looking to build on the momentum it has generated in regions like North America. The sale of Snaitech is not just a financial win but also a strategic decision to hone in on areas where the company sees the most future growth potential.

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Playtech remains optimistic about its future, especially within the B2B sector. The company has reduced its net debt by 9% to €225.5 million, bolstering its financial health. As Playtech continues to expand its presence in the US and Canada, it remains on track to meet its medium-term financial targets for B2B, expecting adjusted EBITDA in the range of €200 million to €250 million for the full year of 2024.

Moreover, the company has already begun to see substantial returns from its partnerships with major operators in the Americas, with revenue in the region growing over 200% year-on-year. Weizer highlighted the potential in these markets, saying, “Our plan to accelerate our presence in the US and Canada is already delivering, with revenues trebling in the period.”

Playtech is also looking ahead to expand its SaaS model, with revenue from this division growing by 44% year-on-year to €33 million. The company remains confident that it will achieve its medium-term revenue target of €60 million to €80 million in this area.

Source:

“Playtech reports 11% growth in adjusted EBITDA for H1 2024“, gamblinginsider.com, September 30, 2024.