Playtech ‘delighted’ with 73% YoY improvement in group revenue

Playtech has published its H1 2022 results, reporting its best-ever performance during the measuring period, with group revenue improving by 73% YoY.
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Playtech has published its financial results for the first half of 2022, reporting its best-ever performance during the measuring period, with group revenue improving by 73% year-over-year.

The technology company noted that its performance during H1 was driven by its regulated B2B markets in the Americas and Europe ex-UK, with CEO Mor Weizer highlighting the group’s growth in the US, Mexico, and Brazil.

Playtech’s best-ever H1

Playtech has reported its best-ever H1 with total group revenue standing at $783.4m, a 73% uptick YoY (H1 2021: $452.28m). The group stated its financial performance was ahead of previous expectations with an adjusted EBITDA of $201.5m, up 64% YoY (2021: $122.7m).

Regulated markets powered Playtech’s financials in H1, with Americas improving by 50% (+37% constant currency) and Europe ex-UK increasing by 39% (+39% cc), resulting in a 17% B2B revenue growth (+13% cc) during the measuring period.

Meanwhile, for B2C, Snaitech’s online business continued to deliver despite retail sites reopening, resulting in an adjusted EBITDA growth of 143% for the vertical.

Playtech profits for H1 came in at $70.6m (2021: €397.4m), which included “a significant gain realized on options embedded in the company’s agreements in the Americas”.

Commenting on the results, Weizer said: “I am delighted with the positive start that the Group has made in the first half of 2022, delivering a financial performance ahead of our expectations with significant strategic and operational progress made against our objectives.”

B2B & B2C performances

For H1, Playtech has declared B2B revenue of $308.5m, a 17% growth YoY thanks to “standout” performances in the Americans and Europe ex-UK, resulting in an adjusted EBITDA of $76.3m (2021: $71.2m). 

The group’s Americas revenues came in at $69m, a 37% constant currency revenue growth, with Caliente in Mexico remaining a key driver and the soon-to-be-regulated Brazil market looking promising. 

Playtech also stated it made “significant progress” in the US, with the launch of its IMS platform with Parx Casino in Pennsylvania, signing new deals with Golden Nugget, WynnBET, Resorts, and 888, as well as earning its sixth US license in the state of Pennsylvania. 

The group also launched with NorthStar in Ontario, Canada, along with Bet365 and 888, while live casino continued to see good growth with a new facility opening in Peru. It also added over 50 further brands to its SaaS offering, bringing the total to over 300.  

Elsewhere, Europe ex-UK grew to $91.7m (39% cc) thanks to a strong start at Holland Casino in The Netherlands, while Asia revenue declined by 22% (26% cc) due to “competitive pressures and the impact of lockdowns”, as well as a bad debt provision of $15.2m in H1 due to collection delays.

Weizer stated: “We continue to make great strides in executing our US strategy, launching with Parx Casino in Pennsylvania, signing several exciting deals with leading Global and US brands, and progressing additional license applications.

“The Americas remain one of the Group’s biggest growth drivers, with continued strong revenue growth in Mexico as well as Brazil complemented by new launches and partnerships in the US, Canada, and Peru.”

In B2C (including Snaitech and white-label), Playtech earned revenues of $481.8m (2021: $194.4m) and an adjusted EBITDA of $125.2m (2021: $51.4m). In Italy, Snaitech adjusted EBITDA grew by 154% to $130.2m (2021: $51.2m) following the reopening of retail sites, while its online business only suffered a 5% YoY revenue decline. 

2022 outlook

Playtech has stated that its strong performance in H1 has continued into H2, “albeit with normal seasonal trends” and that it is managing the impact of the Ukraine invasion, but the macroeconomic outlook “remains uncertain given geopolitical and inflationary pressures”.

However, the group added that following a good 2022 so far it “remains confident” of its future prospects.

Weizer concluded: “We have navigated significant disruption and uncertainty in the period due to well-reported geopolitical tensions and inflationary pressures. For this, I would like to extend my sincere thanks to all of my Playtech colleagues for their hard work in the face of adversity.

“Throughout 2022, we have gone to great lengths to support our Ukrainian colleagues and their families through the tragic events which continue to unfold in the country. We remain in close contact with our employees in Ukraine and will continue to do everything we can to ensure their safety and that of their families.

“The macroeconomic outlook remains uncertain given geopolitical tensions and inflationary pressures, however, we have seen our excellent performance in H1 continue into H2 and expect to see continued strong results from both our B2B and B2C businesses. As such, we are confident about Playtech’s prospects for the remainder of 2022 and beyond.”