Playtech Hails Progress and Reports Increased Revenue for 2023
Playtech enjoyed a year-on-year increase in both revenue and adjusted EBITDA during the 2023 financial year, due to what CEO Mor Weizer called “strategic and operational” progress across the company.
Playtech’s revenue from continuing operations rose by 6.6% to €1.71 billion, driven by growth in both its B2B and B2C segments.
LISTEN TO THIS ARTICLE:Weizer emphasized the company's expansion in the US online gambling market as one of the main thrusters behind the revenue rise. Additionally, he noted the opening of a third live casino facility in Pennsylvania and an increase in its license count to 11, with more applications underway. The B2C division's revenues surpassed €1 billion for the first time. Weizer highlighted the Snaitech brand, which is positioned to capitalize on the online segment's growth potential.
Legal Dispute with Caliplay
The ongoing legal dispute with Caliplay, a joint venture with the Mexico-facing operator Caliente, has posed a continuing challenge. Caliplay wants to end its partnership with Playtech, a move that has led to legal proceedings aimed at annulling the partnership. Caliplay made the process public as it claims it is impacting its regulated business operations in Mexico.
Playtech has responded by taking steps to resolve the dispute and has made claims against Caliplay for unpaid fees, including B2B license fees and additional services fees due from mid-2023. Despite the dispute, Playtech still regards Caliplay as a significant customer and aims to maintain an open dialogue.
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B2B Revenue Increased 8.2% to €684.1 Million
In 2023, Playtech’s B2B revenue increased by 8.2% to €684.1 million, with significant growth in the Americas. Playtech highlighted the contributions of Caliplay in Mexico and other partnerships in Latin America and the US.
The B2C segment also reported record revenue of €1.04 billion, a 5.5% increase from the previous year, largely driven by the Italian-facing Snaitech. Furthermore, despite losses from the HappyBet brand in 2023, attributed to historical litigation expenses, improvements are expected in 2024.
Despite higher overall expenses, revenue growth led to a significant increase in pre-tax profit to €235.8 million and a net profit of €105.1 million after taxes. Adjusted EBITDA for the year increased by 7.1% to €423.3 million.
Looking at the current year, Playtech said that it has had a “solid” start to 2024 and pointed to strong growth trends in both B2B and B2C. It has set a medium-term B2B adjusted EBITDA target of €200 to €250 and a B2C target of €300 to €350, and Weizer said, “We remain very confident in our ability to execute our strategy and to continue delivering value for our shareholders.”
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