Playtech upgrades guidance as B2B business grows amid Snaitech sale
Gambling software firm Playtech has upgraded its guidance due to growth in its business-to-business arm grows, and said it will deliver €1.7bn (£1.42bn) to shareholders via the sale of Snaitech.
Adjusted earning before interest, tax, depreciation and amortization (EBITDA) in the six months ended 30 June rose 11 per cent to €243m (£202m), driven by “strong performance across the B2B business”, Playtech said.
The company said it was on course to deliver full-year adjusted EBITDA slightly ahead of expectations.
Revenue rose five per cent, from €859.6m to €906.8m, while post-tax profit rose 23 per cent to €105.4m.
Diluted earnings per share rose by 22 per cent to reach 33.6 cents, from 17.5 cents.
Mor Weizer, its chief executive, said: “This set of results is further proof of the excellent progress we’ve made this year. We’ve executed our strategy to grow and improve the B2B business, delivering broad-based growth with strong contributions across our key markets, high operating leverage and tight cost control.
“Our plan to accelerate our presence in the US and Canada is already delivering, with revenues trebling in the period. We see a huge opportunity in this market.
With a clear strategy, a strong balance sheet and a great team behind us, we remain very confident in Playtech’s future prospects.”
Snaitech sale
Playtech agreed the sale of its Italian arm Snaitech to Flutter during the period for €2.3bn. The deal, which is expected to close by mid-2025, will see €1.7bn returned to shareholders and €350m paid on an outstanding bond.
“Snaitech has been a key part of Playtech’s growth in recent years and the team delivered another solid performance in the first half, despite the impact of customer-friendly sporting results.
“We are excited about what the future holds for the remaining Playtech business and we see plenty of opportunities ahead of us,” Weizer said.
Snaitech revenue declined by 1 per cent to €483.6m during the period, from €488.4m in the first half of the year.
Playtech said that it saw “good growth in wagers against a tough comparative in the first half of 2023,” which was “offset by customer-friendly sporting results at the start of the year”.