Playtech Revenues Hit by Coronavirus Pandemic
New figures from Playtech (LON: PTEC) show that the company’s revenues decreased by 25.1% to €1.08 billion in 2020, largely due to retail closures caused by the coronavirus pandemic, which affected its B2B and B2C operations.
The revenue was almost evenly split between B2B and B2C operations with B2B revenue down 10.7% to €494.8 million and B2C down 33.8% to €596.3 million. When examined geographically, around half of the business’ revenue came from Italy, mostly from the Snaitech brand. The B2B revenue from Italy was only €25 million, but B2C revenue, almost entirely from Snai, was €522.7 million for overall revenue of €541.4 million after intersegment eliminations.
While the figures from Snai were down year-on-year, Playtech’s chief executive Mor Weizer believes that the brand did well considering that many of its retail locations were closed for much of the year.
Snaitech has continued to excel in Italy despite the retail closures in 2020. Snai achieved the number one market share position in Italy across online and retail sports betting and grew its overall online revenue by 58% in 2020. Italy continues to offer significant growth potential, and Snaitech is ideally positioned to capitalise on this opportunity.
The company saw adjusted earnings before interest, tax, depreciation and amortization (EBITDA) of €253.6 million, down 31.9%. Furthermore, after employee stock expenses, charitable donations and professional fees for acquisitions, the EBITDA was €222.9 million, down 33.2%.
Following other expenses and costs, the company made a pre-tax loss of €52.7 million while in 2019 it make a pre-tax profit of €88.2 million.
However, in many ways it was still a positive year for the company. It expanded its US operations through deals with Bet365 and BetMGM in New Jersey. It also reached an agreement with Parx Casino owner Greenwood that will see it expand into more states.
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