Playtech lauds ‘tremendous growth’ in Americas during 2021

Playtech CEO Mor Weizer has praised the execution of the firm’s expansion in the Americas over the last 12 months, detailing the ‘tremendous growth’ experienced in the region during 2021
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Playtech CEO Mor Weizer has praised the execution of the firm’s expansion in the Americas over the last 12 months, detailing the ‘tremendous growth’ experienced in the region during 2021.

Publishing its preliminary results for the full Fiscal Year 2021, Playtech detailed that revenue in the Americas increased by 64%, driven by online B2B operations in Latin American markets. 

Full-year revenues stood at $1.33bn, up 12% year-on-year as the firm executed its expansion plan and furthered its ambitions in both Latin America and the US.

Buoyed by ‘very strong’ online performance, offsetting the lockdown closure losses, the B2B gambling revenue increased by 11% YoY, standing at $609.1m.

Furthering its US growth strategy in 2021, the firm also secured licenses to operate in Pennsylvania, Arizona and Mississippi as well as signing new partnerships with Scientific Games and Novomatic.

Additionally, the firm launched Parx Casino in New Jersey, Pennsylvania and Michigan and opened two new Live Casino facilities in Michigan and New Jersey. 

The firm celebrated growth in Latin America too, notably Caliente in Mexico and Wplay in Colombia saw ‘excellent growth’. Meanwhile, it launched strategic agreements in Costa Rica and Panama, securing a position in two emerging Latin American markets. 

It also stated that its Latin American operations saw material gains of $640.8m in fair value of derivative financial assets from options relating to Caliente, Wplay and others.

Its B2C operations also saw significant growth in FY21, with revenues including Snaitech, HPYBET and white-label, of $729.1m, up 11.3% YoY.

Despite HPYBET remaining a loss-making entity, B2C adjusted EBIDTA stood at $195.4m, an increase of 39.3% YoY. 

Across the whole company, adjusted EBITDA totaled $348.3m, up 25% YoY, exceeding the senior leadership’s expectations for the year. 

This also ensured that the company went from a $30m adjusted post-tax profit in 2020, to a $140.2m adjusted post-tax profit, an increase of 366%. 

Weizer commented: “Our strong performance is underpinned by our B2B business, in particular the tremendous growth we have seen in the Americas. We have made real progress in the execution of our US strategy, supported by new licences, new launches and new partnerships, and we continue to go from strength to strength in Latin America, buoyed by new strategic agreements across the region. 

“In B2C, the story is similar, with Snaitech continuing to outperform the market, achieving the position of the number one brand across sports betting and retail in Italy.

“The appointment of Brian Mattingley as Chairman significantly strengthens our corporate governance, and our Sustainable Success strategy places ESG at the core of our business.”

2021 also saw the attempted takeover of the company by Aristocrat, which did not secure the 75% shareholder vote needed to allow the transaction to go through. Playtech noted that discussions with TTB over a potential takeover are ‘ongoing’. 

It also detailed that, whilst leadership remains ‘confident’ ahead of 2022, the future looks ‘uncertain’ given the current events in Ukraine having inevitable financial repercussions globally. 

Chairman Brian Mattingley, who joined the company during FY2021, took the opportunity to signal his support to the people of Ukraine, particularly the 700 employees from the war-torn country. 

He added: “2021 also saw us continuing to navigate disruption and restrictions posed by the COVID-19 pandemic, and now more recently with the tragic events in Ukraine. I would like to express our support for the people of Ukraine and in particular our more than 700 Ukrainian colleagues and their families. We will continue to support our colleagues as best we can at this deeply worrying time.

“With regards to the outlook for the company, the Board remains confident in the long-term prospects for the group.”