Playtech reports promising quarter but remains ‘cautious’ of uncertain macro backdrop
Gaming software Playtech posted a promising start to the year this morning, with with Adjusted EBITDA for the first three months of more than €100m.
The beginning of the year has been buffered by both the B2B and B2C businesses; Snaitech has seen the same trends continue from H2 2021, with a good start to the year driven by its online business, retail recovery and favourable sports results.
B2B performance has been driven by very strong momentum from the Americas, in particular Caliplay in Mexico, in addition to a strong performance across the wider B2B operations, including Live Casino.
The Live Casino business has also signed several new licensees and launched several new games. In North America, Playtech has signed multiple new customers in the US and launched several new partnerships in Canada following the opening of the Ontario market.
The Live Casino business has also signed several new licensees and launched several new games. In North America, Playtech has signed multiple new customers in the US and launched several new partnerships in Canada following the opening of the Ontario market.
Whilst the board said it has confidence in the results, the company remains “cautious” due to the uncertain macro backdrop due to the pandemic and the war in the Ukraine.
The Board is also conscious there cannot be any certainty that the strength across the business so far will be repeated throughout the remainder of the year.
Peel Hunt gave the stock a ‘Buy’ recommendation, with a target price of 800p, citing the excellent run of sport results for the firm and the Ukraine war acting as just one of the macro risks for the firm that perhaps shouldn’t be overstated.