Playtech reports strong H1 2024 results, driven by B2B growth

News Team October 8, 2024

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Playtech reports strong H1 2024 results, driven by B2B growth

Playtech has delivered impressive results in the first half of 2024, with its adjusted EBITDA rising by 11 percent to €243 million. This growth was primarily fuelled by the success of its B2B division, particularly in the Americas, where revenue surged by 42 percent.

Mor Weizer (pictured above), CEO of Playtech, stated, “This set of results is further proof of the excellent progress we’ve made this year.” He explained that the company’s strategy is to focus on expanding its B2B business, ensuring growth across key markets.

One of the highlights of Playtech’s H1 performance was the revision of its long-term strategic agreement with Caliplay. This partnership has been a key growth driver, particularly in Mexico. Playtech also expanded its footprint in North America, with revenue from the US and Canada increasing by more than 200 percent compared to H1 2023. The company’s partnerships with major operators, such as Rush Street and BetMGM, further cement its position in the region.

Despite some challenges in its B2C division, Playtech remains optimistic about its future. The company’s live casino business continues to thrive, with revenue from regulated markets growing by 17 percent. Furthermore, Playtech signed a strategic partnership with MGM Resorts, which will bring live casino content from Las Vegas directly to players worldwide.

Snaitech’s future acquisition by Flutter Entertainment

A major milestone for Playtech is its agreement to sell its Italian subsidiary, Snaitech (formerly Snai), to Flutter Entertainment for €2.3 billion. The sale, expected to be finalised by Q2 2025, represents an impressive return on Playtech’s investment in Snaitech, which it acquired in 2018 for €846 million. Playtech plans to return between €1.7 billion and €1.8 billion to shareholders following the sale.

Snaitech, one of Italy’s largest gambling companies, experienced a slight revenue decline of 1 percent in H1 2024, totaling €483.6 million. Adjusted EBITDA for Snaitech dropped by 5 percent, primarily due to customer-friendly sporting results early in the year. Retail revenues fell by 2 percent, while online revenues grew modestly by 1 percent. However, Snaitech maintained its dominant market position in both retail and online segments across Italian betting brands.

“Snaitech has been a key part of Playtech’s growth in recent years, and the team delivered another solid performance in the first half,” Weizer commented. He praised Snaitech’s robust wagering volumes, even as retail sales faced headwinds.

Through this acquisition, Flutter will strengthen its presence in Italy, while Playtech will refocus on its highly profitable B2B operations.

Outlook for 2024

Playtech is on track to exceed its initial expectations for full-year 2024. The company anticipates adjusted EBITDA for its B2B segment to fall within the range of €200 million to €250 million, hitting this target earlier than expected. Additionally, Playtech’s strong balance sheet, bolstered by the sale of Snaitech, positions it to pursue further growth opportunities, both organic and through acquisitions.