Playtech Posts B2B Surge in 2024 as Focus Shifts to Post-Snaitech Strategy

Playtech has delivered a solid financial performance for the year ended 31 December 2024, highlighted by a 10% year-on-year rise in revenue from continuing operations. Total revenue for the core business came in at €848 million, reflecting the company’s strategic focus on its B2B segment. According to its latest report released on 27 March, this figure excludes Snaitech, which Playtech has classified as a discontinued operation following its planned sale to Flutter.

Including discontinued operations, Playtech’s group revenue rose to €1.79 billion, up 5% from 2023. Snaitech’s revenue alone grew 1% to €956.1 million despite a slowdown linked to customer-friendly betting results, particularly early in the year. The sale of Snaitech is expected to close in the second quarter of 2025, pending Italian antitrust clearance.

“2024 was a landmark year for Playtech,” said CEO Mor Weizer. “We successfully reached an agreement to sell Snaitech to Flutter Entertainment, delivering significant value to our shareholders while enabling Playtech to refocus predominantly on its core strengths as a pure-play B2B business.”

The B2B division stood out in 2024, generating €754.3 million in revenue, a 10% increase over the previous year. This growth was particularly strong in the Americas, where revenue jumped 19%, including a 126% surge in the U.S. and Canada. Playtech highlighted standout performances from Colombia’s Wplay and its ongoing expansion efforts in the U.S. and Canadian markets.

Canada is poised for further growth, especially with Alberta and British Columbia moving toward regulatory frameworks. Playtech’s partner NorthStar reported continued momentum, while other big names like Penn Entertainment, FanDuel, and BetMGM contributed to expansion in Ontario.

Brazil’s revenue also rose significantly and will be reclassified as regulated revenue starting Q1 2025. Latin America’s strong performance was complemented by the resolution of Playtech’s dispute with Caliente, with Caliplay resuming payments. The settlement recovered over €150 million in previously unpaid software and service fees.

Playtech’s European B2B business delivered mixed results. While the UK posted an 8% gain, the rest of Europe experienced a 1% decline due to setbacks in Greece, Poland, and the Netherlands. Nonetheless, Spain and Italy continued to perform strongly.

Playtech also emphasized its SaaS model success, with revenues hitting the top end of its target range at €80 million in 2024 — up 59% year-on-year.

Playtech’s adjusted EBITDA from continuing operations rose 22% to €214.7 million. However, reported EBITDA declined 16% to €127.7 million due to higher operational costs. The company posted a pre-tax loss of €9.4 million from continuing operations, compared to a €70.4 million profit in 2023. After taxes, the reported net loss was €136.5 million.

On the adjusted basis, the company’s post-tax profit from continuing operations reached €58.5 million, representing a 312% increase year-on-year. Including Snaitech and other discontinued activities, Playtech’s adjusted net profit rose 42% to €223.2 million, and with foreign exchange gains included, the total adjusted bottom-line profit was €235.9 million — a 58% jump.

The company’s net debt dropped from €282.8 million to €142.8 million, boosted by resumed Caliplay payments and strong cash generation. Playtech also made a €200 million bond repayment and signed a new €225 million revolving credit facility to replace its previous €277 million RCF, effective after the Snaitech deal closes.

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With the Snaitech transaction expected to close in Q2 2025, Playtech intends to return between €1.7 billion and €1.8 billion to shareholders via a special dividend. The revised Caliplay agreement, set to be finalized by 31 March 2025, marks a renewed foundation for growth in Latin America.

Looking ahead, Playtech has set a new medium-term EBITDA target for its continuing operations between €250 million and €300 million, and free cash flow goals of €70 million to €100 million.

Despite mixed analyst feedback on B2C brands like Happybet and Sun Bingo, Regulus Partners recognized the company’s strong performance in North America and its strengths in platform and customer relationship tools.

“The combination of Playtech’s industry-leading technology with its exposure to attractive markets underpins our confidence in the group’s new medium-term targets. We are excited about the future and the many opportunities ahead,” Weizer said.

Source:

Results for the year ended 31 December 2024, otp.tools.investis.com, March 27, 2025.