Playtech Surpasses Market Predictions with Record H1 2023 Earnings
LISTEN TO THIS ARTICLE:Playtech has revealed that it’s on course to exceed market projections this year due to its impressive H1 results. The significant earnings during the first half were mainly due to its success in rapidly growing markets such as the US and Latin America.
Impressive Revenue Growth
For the six months leading up to 30 June 2023, the company reported an 8% year-on-year increase in revenue to €859.6 million. A breakdown of this revenue shows the company’s B2C business, comprising Snaitech, HAPPYBET, and Sun Bingo, had risen by 9% to €532.1m. Meanwhile, the B2B segment experienced a growth of 7%, totaling €334.5 million. In addition to this, it was revealed In a report from Playtech that the majority of Brazilians engage in online betting.
Our success in the period was driven by our diversified portfolio, spanning B2B and B2C, in some of the fastest-growing regulated markets around the world. Having laid the groundwork in the US, we are growing our offering across multiple states and are confident in our future prospects following the landmark agreement with Hard Rock Digital.
Additionally, we further cemented our leadership in LatAm with Caliente in Mexico and Galera.bet in Brazil. Snaitech in Italy enjoyed another strong period, with the management team continuing to leverage their retail presence to grow the online business.
Significant Achievements and Expansions
The Americas emerged as a dominant region in the B2B segment during this period, producing an impressive 43% revenue growth to €99.7 million. Central to this progression was Caliente, complemented by the consistent growth in Brazil as it edges towards full regulation.
Furthermore, Playtech made notable progress in the US gambling market. The company signed a number of important agreements and began operations in various states, collaborating with operators such as 888, Rush Street Interactive, and PokerStars. Playtech now has a presence in 10 states.
Revenue in Europe, excluding the UK, grew by 5% to €96.6 million. Playtech's gambling industry growth was somewhat counteracted by decreased revenues from the Netherlands and the UK, mainly due to regulatory challenges.
European Retail and B2C Performance
In the B2C segment, Snaitech, Playtech’s leading brand, saw significant growth in H1 2023. The revenue surge was driven by both the retail segment, which saw a 9% growth, and the online sector with a 12% rise. Moreover, retail betting sales increased by 24% during H1, mainly because of the increased demand after the FIFA World Cup.
However, HAPPYBET saw a decline in revenue by 4% in H1 2023 in comparison to the previous year. This drop was attributed to a decrease in retail sites in Germany. Conversely, Austrian revenues rose during the same period, thanks to the expansion of retail sites in Tyrol and Vienna. Sun Bingo and Other B2C sectors reported an 8% revenue increase, to €34.1 million.
Financial Insights and Future Prospects
Playtech declared a record Total Adjusted EBITDA from its ongoing operations of €219.9 million, which represents a 10% rise year-on-year. The largest segment of costs was operations, totaling €148.6 million, a growth of 2% primarily attributed to the expenses arising from its US expansion. The profit before tax from continuing operations fell to €79.6 million from €103.7 million.
Chief Executive Weizer expressed his optimism, stating that the growth in the first half of the financial year instils further confidence in achieving Playtech’s medium-term targets. He emphasized, “With our proven strategy, robust balance sheet and our operational expertise, we are confident in our ability to capitalise on the many growth opportunities we have ahead.”
Lastly, 2022 saw a surge in Playtech’s revenue by 33%, rising to €1.60 billion from the previous year’s €1.21bn. This growth was followed by a 28% increase in Adjusted EBITDA, which rose from €317.1 million in the previous year to €405.6 million in 2022.
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