Playtech sees 4% revenue fall but maintains confidence in B2B success

Playtech Plc has highlighted a ‘very strong performance’ for its B2B verticals throughout the first half of 2021, achieving objectives across three continents, despite experiencing a 4% decline in revenue. 

Informing stakeholders in its interim trading report and following on from its July update, the FTSE 250 gaming technology group detailed that total revenue had fallen to €457.4 million (H1 2020: €476.7m), although this was overshadowed by substantial profits of €401.9 million, in comparison to a loss of €22.1 million in H1 2020.

Meanwhile, the company’s adjusted EBITDA stood at €124.1 million (2020: €109.5m), representing an increase of 13%, with the company describing the overall results as ‘in line with expectations at the start of the year’.

Highlighting its B2B success, the company disclosed revenue growth of 16% to €267.2 million (H1 2020: €229.7m), offsetting hurdles encountered as a result of the COVID-19 pandemic.

Diversification of the firm’s B2B operations was earmarked as a particular achievement, having added over 50 brands to its SaaS offering – bringing the total to 250 brands since launch – with revenue growth for this division standing at 128%.

“I am delighted by our strong strategic and operational progress to date in 2021, despite the ongoing challenges posed by the pandemic,” said Mor Weizer, Playtech CEO.

“These results demonstrate the quality of our technology and products, the significant progress made against our strategic priorities, and wider momentum across Playtech’s operations.”

In Europe, Italy proved to be the biggest success story for Playtech, with the company’s B2C sports betting and retail Snaitech subsidiary performing well in the former with revenue growth of 95% to €123.4 million and Adjusted EBITDA growth of 118% to €72.6 million.

Snaitech’s success was underpinned by a €20 million million sell-off of surplus land in July, whilst outside of Italy a strategic agreement regarding software and services was signed with Holland Casino.

However, the group experienced its most significant expansion in the US and Latin America, with revenue from the two continents increasing by 106% to €46.4 million (H1 2020: €22.9 million.

Notable developments included the expansion of the Caliente brand in Mexico, in addition to the company solidifying its LatAm foothold via launches in Costa Rica and Panama and a ‘crowing contribution’ in Colombia via Wplay.

Meanwhile, in the US the firm underscored its new New Jersey-based partnerships with Scientific Games and Novamatic as well as existing arrangements with bet365 and BetMGM in the state, in addition to the commencement of operations in Michigan through Parx Casino.

However, due to the ongoing COVID-19 pandemic and the possibility of further lockdowns across different jurisdictions Playtech remains uncertain about the future of the macroeconomic outlook, although the group has reported a ‘strong start’ to H2 operations in July and August. 

“Looking forward, given the strong H1 performance, the momentum in the business and the easing of lockdown restrictions, we are confident of Playtech’s prospects for the remainder of 2021 and beyond,” Weizer concluded.

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