Playtech Plc has delivered on its strategy to simplify the company and focus on ‘core B2B’ growth by divesting its final non-core business asset ahead of a critical second half of 2021.
This morning, Playtech confirmed that it had reached definitive terms to sell financial trading division Finalto to Barinboim Group – a private consortium led by Leumi Partners and Menora Mivtachim Insurance – in a deal valued at $210 million (€150m).
Announced as part of an AGM trading update, Playtech added that corporate performance had remained ahead of expectations, trading against further COVID-19 headwinds which saw retail lockdowns continue across the UK and Italy.
Playtech also underlined confidence in its B2B online gambling performance, which the company stated was ‘ahead of its adjusted EBITDA expectations’, providing a favourable outlook for the remainder of H1 trading.
Further B2B positives saw Playtech underscore its strengthened global commercial pipeline during a disrupted trading period by securing a new US multi-state agreement with Greenwood Companies.
Elsewhere, Playtech secured B2B supplier contract extensions with leading Mexican market gambling group Caliente and with WPlay Colombia – which Playtech stated had opened a commercial pathway for entry into the LatAm markets of Guatemala, Costa Rica and Panama.
However, in Europe, Playtech noted that it was monitoring Italian developments closely as the closure of Snaitech retail stores is expected to continue for the majority of H1 trading.
Playtech has prepared for a critical H2 trading period by welcoming Brian Mattingley as its new Chairman, replacing Claire Milne as corporate governance leader from 1 June.
“I am delighted by the strong performance Playtech has delivered so far in 2021, despite the ongoing challenges posed by the pandemic,” said Group CEO Mor Weizer.
“The sale of Finalto delivers on our strategy to simplify the Company. Our technology and product offering is unrivalled and we have a clear growth strategy to expand the geographic reach of our Core B2B business.”