Playtech has labelled its 2022 financial performance as “excellent” and believes it is “well-placed” for 2023 despite macroeconomic and geopolitical uncertainties.
Reflecting on the results, CEO Mor Weizer has called 2022 “a year of considerable strength for Playtech”, adding that the group has “continued to deliver” strategically, is “making great progress” in North America, and has also started the new year well.
Playtech 2022 financials
Publishing its FY2022 financials, Playtech declared revenues of €1.6bn, a 33 per cent increase year-over-year (FY2021: €1.2bn), “mostly driven by retail reopening following COVID-19 related restrictions, which impacted H1 2021 in many of the company’s main markets, including Italy, as well as its continued growth in regulated B2B markets”.
Per vertical, B2B revenues grew by 14 per cent YoY to €632.4m (2021: €554.3m), driven by Caliente’s growth in Mexico, as well as increases in the Netherlands, Poland and Brazil, partly offsetting decreases in the UK and Asia.
B2C revenues rose by 48 per cent to €983.1m (2021: €663.7m) after Snaitech had an excellent performance due to strong online results and retail shops being open for the full year.
The group’s adjusted EBITDA came in at €405.6m, up 28 per cent YoY (2021: €317.1m) following “a change in channel mix, with the return of the lower margin retail segment for the full year 2022, versus closures during the first half of 2021 due to COVID-19, as well as increased bad debt provision in the B2B business in Asia, recognised in H1 2022”.
Playtech’s adjusted post-tax profit increased by 26 per cent to €160.5m (2021: €127.6m), a reported profit of €40.6m (2021: €686.7m) and net debt of €275.2m (2021: €332.6m).
The group also completed the sale of Finalto for cash consideration of $228.1m in July 2022, with a profit on disposal of €15.1m.
Weizer commented: “2022 was a year of considerable strength for Playtech, in which we delivered record revenues and EBITDA, ahead of market expectations. All parts of the business contributed to this performance, with B2B powered by Europe (ex-UK) and the Americas, and B2C’s impressive performance underpinned by Snaitech’s continued strength in the Italian market in both retail and online.”
Breaking down B2B operations by region, Americas revenue rose by 43 per cent to €144.7m (2021: €101.3m), with Caliente being a key driver alongside the Brazilian market performing well.
Playtech also highlighted the moves made for its US strategy, including the launch of its IMS platform with Parx Casino in Pennsylvania, new deals with Golden Nugget, WynnBET, Resorts and 888, which are expected to go live in the coming months, and licenses in Pennsylvania and Colorado.
NorthStar was also launched in Ontario, where an extension has recently been announced which will ensure the group is “well positioned to benefit from the attractive Canadian market”.
Europe excluding-UK revenue grew by 31 per cent to €184.6m (2021: €141.4m) thanks to the Netherlands and contributions from Poland, Spain and Ireland. UK fell by 4 per cent to €126.7m (2021: €132.1m), while the Rest of the World improved by 44 per cent to €5.6m (2021: €3.9m).
Unregulated excluding Asia revenues increased by 11 per cent to €103.6m (2021: €93.7m), while Asia revenues decreased by 18 per cent to €67.2m (2021: €81.9m) “due to competitive pressures and the impact of lockdowns”.
Per B2C vertical, Snaitech reported revenues of €899.8m, up 54 per cent YoY (2021: €584.7m), white label – including Sun Bingo – rose by 5 per cent to €65.3m (2021: €61.9m), and HAPPYBET increased by 10 per cent to €20.1m (2021: €18.2m).
“Strategically we have also continued to deliver, executing the successful sale of Finalto continuing our simplification strategy, and making great progress in North America with the launch of the IMS platform with Parx Casino in Pennsylvania and having signed several significant new deals, including Golden Nugget, WynnBET, Resorts and 888,” noted Weizer.
Looking ahead, Playtech has already made movements in 2023, reaching an agreement with Hard Rock Digital, and has been granted licenses in Ohio and Maryland. The group also highlighted the strong start to the year by Snaitech and Caliente.
In terms of guidance, Playtech has announced a medium-term adjusted EBITDA target for B2B of €200m to €250m, and €300m to €350m for Snaitech. Its board also “remains confident in Playtech’s ability to execute on growth opportunities across both B2B and B2C divisions” following the strong 2022 and the momentum within the business.
Weizer added: “We have started the new financial year well and announced the signing of the landmark transaction with Hard Rock Digital, and in spite of the continued macro-economic and political uncertainty, remain confident in our future prospects, as well as our ability to deliver value to all our stakeholders in a sustainable and responsible way.
“I would like to take this opportunity to thank my colleagues and partners for their continued dedication and support. In particular, I’d like to acknowledge the bravery of our colleagues in the Ukraine and praise the work of our crisis management team, who have worked tirelessly to support our Ukrainian colleagues and their families.”