Playtech Reports Strong H1 2024 Growth, Driven by Expansion in North America
Playtech has reported strong financial results for the first half of 2024, marked by significant growth in its B2B operations across key markets, especially in the U.S. and Canada. For the period ending June 30, 2024, the company’s total revenue rose by 5% to €906.8 million, while adjusted EBITDA saw an 11% increase, reaching €243.0 million.
B2B Segment Leads Growth
Playtech’s B2B division continues to be a key driver of the company’s success, with revenue up 14% year-over-year to €382.2 million and adjusted EBITDA soaring by 38% to €112.3 million.
CEO Mor Weizer attributed the division’s performance to operational efficiency and strategic market expansion, particularly in the Americas. “We’ve executed our strategy to grow and improve the B2B business, delivering broad-based growth with strong contributions across our key markets,” Weizer said.
The U.S. and Canada have become focal points for Playtech’s expansion, with revenue from these regions growing by over 200% compared to H1 2023.
This growth was bolstered by partnerships with major operators such as DraftKings, BetMGM, and Rush Street Interactive, alongside the migration of Ocean Casino Resorts in New Jersey to Playtech’s platform.
Playtech also expanded its collaboration with PENN Entertainment, entering markets in Michigan and Pennsylvania.
Weizer highlighted the U.S. as a critical growth opportunity, with future gains anticipated from a new agreement with MGM Resorts to produce live casino content from Las Vegas.
Strategic Sale of Snaitech
In a significant strategic move, Playtech has agreed to sell its Snaitech division to Flutter Entertainment for €2.3 billion, with the transaction expected to close by Q2 2025.
Following the sale, Playtech plans to return between €1.7 billion and €1.8 billion to shareholders through a special dividend.
Snaitech’s revenue dipped slightly by 1% to €483.6 million due to unfavorable sporting outcomes, but the division maintained its leading market share in Italy’s retail and online betting sectors.
Despite the small decline, Snaitech remains an important contributor to Playtech’s overall B2C performance.
Steady B2C Performance
Playtech’s B2C segment, which includes brands such as Sun Bingo, posted flat revenue at €532.4 million compared to the same period in 2023.
However, some areas within the B2C division saw notable growth, with Sun Bingo and other offerings increasing by 17%, driven by the launch of new brands and heightened customer engagement.
Investment and Future Outlook
Looking ahead, Playtech is focusing heavily on expanding its operations in North America, particularly through investments in its U.S. and Canadian divisions.
The company plans to grow its workforce in these regions to meet the increasing demand for its live dealer and gaming solutions.
Despite these high levels of investment, Playtech is confident it will meet its medium-term target for B2B adjusted EBITDA of between €200 million and €250 million for FY 2024.
While CFO Chris McGinnis acknowledged that profitability in the U.S. market may take time, he emphasized that Playtech’s strong balance sheet and cash flow position the company for continued growth.
With the upcoming sale of Snaitech and a clear focus on expanding its North American footprint, Playtech appears well-positioned for further success in the latter half of 2024.
“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,” Weizer concluded.
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