Playtech continues to be in discussions regarding the potential sale of its Finalto, formerly TradeTech, financial services division, as the company continues on its strategy to simplify its business and dispose of non-core assets.
Making the comments in its Q4 2020 trading update, Playtech asserts that its financials division had a very strong year, driven by an exceptional performance in the first half, followed by a challenging H2.
Playtech’s business simplification ambitions has also seen the $10m divestment of YoYo Games, part of the discontinued casual and social gaming division. This sale means the group has now disposed of all its casual and social gaming assets.
The gambling tech firm says that its 2020 full year performance is expected to be ahead of expectations, with praise issued to the “hard work, resilience and commitment of its people” as well as strategic and operational progress amid a challenging environment.
US progress saw licence approval and Bet365 and Entain launches in New Jersey and a Michigan regulatory green-light, while further strength was added further south with progress in Mexico, Colombia, Guatemala, Costa Rica and Panama all singled out.
Furthermore, it is added that Snaitech “continued to strengthen its market leading position in Italy,” with strong online growth and gains in market share stipulated.
Furthermore the group also praised its ‘Sustainable Success’ business strategy, which is designed to support licensees and partners to ensure that pre-COVID safer gambling commitments and industry codes of conduct to further safeguard consumers during the crisis are met and are effective.
Due to the strategic and operational progress outlined, a solid financial performance for 2020 is expected to bring adjusted EBITDA of at least €300m. The standout performer in H1 was Finalto, with core B2B and Snaitech driving H2.
Looking at core B2B a little closer, Playtech says that its online casino division, including live casino, bingo and poker, all performed “very well throughout 2020”.
Sports, which is heavily weighted towards retail, was impacted by retail closures and the lack of sporting events at various points during the year.
The company says that its business in Asia was impacted by government restrictions in response to the pandemic, as well as those on payment processing.
Tentatively glancing ahead, the group voices confidence that it “remains well placed to make further strategic and operational progress in 2021,” despite continued COVID challenges and a “highly uncertain” macroeconomic outlook.