Playtech Achieves 5% Revenue Growth in H1 2024
Playtech, a leading technology provider in the online gambling sector, has delivered robust results for the first half of 2024, underscoring its successful expansion in key markets, particularly in the U.S. and Canada. The company reported a 5% increase in total revenue, reaching €906.8 million for the six months ending June 30, 2024, while adjusted EBITDA rose by 11% to €243.0 million.
North America Growth
Playtech’s B2B segment stood out as the primary engine for growth, with revenues climbing 14% year-over-year to €382.2 million. The division’s adjusted EBITDA saw a significant 38% increase, reaching €112.3 million, attributed to strong operational leverage and disciplined cost management.
Commenting on the results, Playtech CEO Mor Weizer stated, “We’ve executed our strategy to grow and improve the B2B business, delivering broad-based growth with strong contributions across our key markets.”
The Americas, particularly the U.S. and Canada, were instrumental in this growth. Revenue in these regions increased by more than 200% compared to the first half of 2023. Key partnerships with operators such as DraftKings, BetMGM, and Rush Street Interactive contributed to this performance, along with the migration of Ocean Casino Resorts in New Jersey to Playtech’s platform. Playtech also deepened its collaboration with PENN Entertainment, launching services in Michigan and Pennsylvania.
Weizer highlighted the strategic importance of these markets, stating, “Our plan to accelerate our presence in the U.S. and Canada is already delivering, with revenues trebling in the period.” The company expects further gains following its agreement with MGM Resorts to produce live casino content from two Las Vegas resorts.
Strategic Sale of Snaitech
In a significant strategic move, Playtech has agreed to sell its Snaitech division to Flutter Entertainment for €2.3 billion. This transaction is anticipated to close by the second quarter of 2025, with Playtech planning to return between €1.7 billion and €1.8 billion to shareholders through a special dividend.
Snaitech, despite a slight revenue decline of 1% to €483.6 million, retained its leading market position in Italy’s retail and online betting sectors. While customer-friendly sporting results impacted earnings, Snaitech continues to be a significant part of Playtech’s overall B2C revenue, contributing strongly to its bottom line.
Playtech’s B2C division, including brands such as Sun Bingo, maintained steady revenue at €532.4 million, on par with the first half of 2023. Within this segment, Sun Bingo and other brands saw notable growth, with revenue increasing by 17% thanks to new brand launches and enhanced customer engagement.
Investments and Future Outlook
As part of its expansion efforts, Playtech is heavily investing in its U.S. operations, particularly in the live dealer and gaming solutions market. The company plans to significantly boost its U.S. and Canadian workforce to meet growing demand.
Despite its substantial investments, Playtech is on track to achieve its B2B Adjusted EBITDA target of €200 million to €250 million for FY 2024, earlier than initially expected.
CFO Chris McGinnis tempered expectations regarding profitability, stating, “We are more excited than ever about the U.S. opportunity, but I wouldn’t say that profitability is imminent.” However, Playtech’s strong financial position provides a solid base for sustained growth.
Looking ahead, Playtech’s strategic sale of Snaitech and its focus on expanding its footprint in North America position the company for further success. CEO Mor Weizer concluded, “We have started the second half of the year well and are on track to be within our B2B Adjusted EBITDA medium-term target range in FY 2024.”
