Playtech reports 5% rise in revenue in “landmark year”
The company has hailed a transformative year as it exits its B2C operations.
UK.- Playtech Plc has hailed the results of a transformative 2024 as it transitioned to focus entirely on B2B services. The FTSE250-listed gambling tech provider reported annual revenue of €1,791.5m, up five per cent year-on-year.
The figure includes results from Snaitech B2C business in Italy, which Playtech is in the process of selling to Flutter Entertainment for €2.4bn. Adjusted EBITDA came in above expectations at €480m, up from €432m in 2023.
Revenue from the B2B segment grew by 10 per cent year-on-year to €754.3m. Adjusted EBITDA rose by 22 per cent to €222m, driven by growth in the US and Canada (+126 per cent) and Latin America. Live casino revenue was up by 24 per cent, and the business benefited from new deals with DraftKings, Hard Rock Digital, MGM Resorts and FanDuel. The SaaS business generated €80m, up 59 per cent.
Meanwhile, the remaining B2C business generated €1,052.7m and adjusted EBITDA of €258.4m, rising by 3 per cent. Snaitech contributed revenue of €956m, up by 1 per cent.
The German subsidiary HAPPYBET continued to make a loss while Sun Bingo in the UK saw revenue rise by 7 per cent but EBITDA fall owing to higher spending on marketing. Playtech is currently negotiating a potential sale of HAPPYBET to a German business.
Post-tax profit was negative €24m, down from positive €105m in 2023 due to €119.7m in impairments, a €57m deferred tax asset write-down and reduced gains from financial instruments.
Playtech expects its revised deal with Grupo Caliente’s online gambling subsidiary Caliplay in Mexico to come into effect on March 31, ending a long-running dispute over unpaid fees.
Caliplay will recommence payment of disputed software and services fees to Playtech. The deal will see Playtech take on a 30.8 per cent share in Caliplay’s US-incorporated holding company, Caliente Interactive. The two parties will enter into a revised eight-year B2B software licence and services agreement.
CEO Mor Weizer said: “2024 was a landmark year for Playtech. 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.
“Additionally, we are pleased to have secured a revised strategic agreement with Caliplay, our partner in Mexico, providing greater certainty and a strong foundation for future growth.”
Chairman Brian Mattingley, who is stepping down from his position, stated: “The sale of Snaitech marks a transformational moment for Playtech, enabling us to deliver exceptional shareholder value through a special dividend of up to €1.8bn, as well as reposition the Group for long-term growth as a pure play B2B leader.
“We believe we have the right balance sheet, a clear strategic direction and accelerating growth in high-growth markets to capitalise on the numerous opportunities that lie ahead.”
