Playtech has voiced confidence in capitalising on “the exciting market opportunities ahead” following a “strong” first half of the year that was aligned to the successes of both of the B2B and B2C divisions.
Buoyed by a record performance through the first six months of the year, the company also stands slightly ahead of current earnings predictions for the entirety of 2023.
This is due to the group reporting revenue of €859.6m through H1, up eight per cent year-on-year from €792.3m, with this projecting confidence of reaching a medium-term adjusted EBITDA target of €200-€250m and €300-€350m across the B2B and B2C divisions.
Breaking this figure down, the former of those reporting segments saw revenue rise seven per cent to €81.3m (2022: €77.2m), with the Americas hailed as “the standout region”.
Caliente was cited as the “key driver” as revenue as the region swelled 43 per cent to €99.7m, with Brazil continuing an upward trajectory as it edges closer to regulation.
As several manoeuvres were highlighted as causing US optimism, such as a Hard Rock Digital alliance and additional NorthStar Gaming
investment, revenue across Europe, excluding the UK, nudged five per cent ahead to €96.6m. Growth was reported “across multiple countries”, including Poland and Spain.
On a B2C basis, revenue and adjusted EBITDA were nine per cent and 14 per cent ahead YoY after closing H1 at €532.1m (2022: €487.3m) and €138.6m (2022: €121.9m), respectively.
This, the company noted, was driven by Snaitech growth across each of the retail and digital verticals.
“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,” commented CEO Mor Weizer.
“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.”
Additionally, group-wide EBITDA increased 19 per cent to €207.3m (2022: €173.9m), however, post-tax profit plummeted to €3.1m (2022: €71.4m).
This was said to be due to “an overall reduction in the fair value of the derivative financial assets recognised in the income statement, and the derecognition of brought forward deferred tax assets”.
The current quarter is said to have started well with normal seasonality, with the Playtech board noting confidence in the group’s ability to execute on growth opportunities across all areas of the business.
Weizer said: “We delivered our highest ever adjusted EBITDA in the first half of 2023, demonstrating the benefits of the continued strategic and operational progress made in recent years. I would like to thank all our colleagues for their hard work and support in making this possible.”
Adding: “We have started the second half of the year well and are on track to deliver FY23 adjusted EBITDA slightly ahead of current expectations. 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.”
