Playtech (LSE:
PTEC) has announced
its financial results for 2024 showing a post-tax profit of €157 million, 42%
higher than a year ago. Overall, the company reported a mixed performance
across its divisions as it prepares for a strategic shift following the planned
sale of its Snaitech unit.
“Our Core B2B Business Had an Outstanding Year”
Total
reported revenue from continuing and discontinued operations increased by 5% to
€1.79 billion compared
to $1.71 billion in 2023. Adjusted EBITDA grew by 11% to €480.4 million from
€432.3 million reported a year earlier.
The
B2B division saw strong growth in its core regulated markets, particularly
in the Americas. B2B revenue increased by 10% to €754.3 million (2023: €684.1
million), with Adjusted EBITDA rising 22% to €222.0 million (2023: €182.0
million).
“Our
core B2B business had an outstanding year, achieving the medium-term target we
set two years ago ahead of schedule,” commented Mor Weizer, the CEO of
Playtech. “The Americas saw substantial revenue growth, with Wplay in Colombia
delivering a particularly strong performance. Meanwhile, our expansion in the
US and Canada continues to gain momentum as we sign up and launch with a
growing list of operators.”
In the B2C
segment, revenue was up 2% to €1,052.7 million (2023: €1,037.0 million), while
Adjusted EBITDA increased 3% to €258.4 million (2023: €250.3 million). The
Snaitech division within B2C was impacted by customer-friendly sporting results
throughout 2024.
€1.8 Billion Dividend on
Snaitech Sale
Playtech
has also entered into a
definitive agreement to sell Snaitech to Flutter Entertainment for a total
enterprise value of €2,3 billion. The company intends to pay a special
dividend of between €1.7 billion and €1.8 billion following the completion of
the sale, which is expected in Q2 2025.
“We
successfully reached an agreement to sell Snaitech to Flutter Entertainment,
delivering significant value to our shareholders while enabling Playtech to
refocus predominantly on its core strengths as a pure-play B2B business,” added
Weizer.
The company
also announced a revised strategic agreement with Caliplay, its partner in
Mexico. Under the new terms, Playtech will hold a 30.8% equity interest in
Caliente Interactive, Inc., the new US-incorporated holding company of
Caliplay.
The
company reported strong performance in the US and Canada, with revenue
growth of 126% in 2024, reaching €29.8 million. Playtech continued to expand
its partnerships and product offerings in these markets.
Future Outlook and Targets
Playtech
has set new medium-term financial targets for its continuing business, with an
Adjusted EBITDA target range of €250–300 million and a free cash flow target of
€70–100 million.
The
company’s net debt decreased to €142.8 million as of December 31, 2024 (2023:
€282.8 million). Playtech made a €200.0 million partial repayment of its 2019
Bond in December 2024.
Looking
ahead, Playtech reported a good start to trading in 2025, reflecting strong
underlying growth trends in its B2B operations. However, the company faces
challenges in certain areas, including the closure of its Austrian HAPPYBET
business and ongoing regulatory changes in various markets.
Playtech (LSE:
PTEC) has announced
its financial results for 2024 showing a post-tax profit of €157 million, 42%
higher than a year ago. Overall, the company reported a mixed performance
across its divisions as it prepares for a strategic shift following the planned
sale of its Snaitech unit.
“Our Core B2B Business Had an Outstanding Year”
Total
reported revenue from continuing and discontinued operations increased by 5% to
€1.79 billion compared
to $1.71 billion in 2023. Adjusted EBITDA grew by 11% to €480.4 million from
€432.3 million reported a year earlier.
The
B2B division saw strong growth in its core regulated markets, particularly
in the Americas. B2B revenue increased by 10% to €754.3 million (2023: €684.1
million), with Adjusted EBITDA rising 22% to €222.0 million (2023: €182.0
million).
“Our
core B2B business had an outstanding year, achieving the medium-term target we
set two years ago ahead of schedule,” commented Mor Weizer, the CEO of
Playtech. “The Americas saw substantial revenue growth, with Wplay in Colombia
delivering a particularly strong performance. Meanwhile, our expansion in the
US and Canada continues to gain momentum as we sign up and launch with a
growing list of operators.”
In the B2C
segment, revenue was up 2% to €1,052.7 million (2023: €1,037.0 million), while
Adjusted EBITDA increased 3% to €258.4 million (2023: €250.3 million). The
Snaitech division within B2C was impacted by customer-friendly sporting results
throughout 2024.
€1.8 Billion Dividend on
Snaitech Sale
Playtech
has also entered into a
definitive agreement to sell Snaitech to Flutter Entertainment for a total
enterprise value of €2,3 billion. The company intends to pay a special
dividend of between €1.7 billion and €1.8 billion following the completion of
the sale, which is expected in Q2 2025.
“We
successfully reached an agreement to sell Snaitech to Flutter Entertainment,
delivering significant value to our shareholders while enabling Playtech to
refocus predominantly on its core strengths as a pure-play B2B business,” added
Weizer.
The company
also announced a revised strategic agreement with Caliplay, its partner in
Mexico. Under the new terms, Playtech will hold a 30.8% equity interest in
Caliente Interactive, Inc., the new US-incorporated holding company of
Caliplay.
The
company reported strong performance in the US and Canada, with revenue
growth of 126% in 2024, reaching €29.8 million. Playtech continued to expand
its partnerships and product offerings in these markets.
Future Outlook and Targets
Playtech
has set new medium-term financial targets for its continuing business, with an
Adjusted EBITDA target range of €250–300 million and a free cash flow target of
€70–100 million.
The
company’s net debt decreased to €142.8 million as of December 31, 2024 (2023:
€282.8 million). Playtech made a €200.0 million partial repayment of its 2019
Bond in December 2024.
Looking
ahead, Playtech reported a good start to trading in 2025, reflecting strong
underlying growth trends in its B2B operations. However, the company faces
challenges in certain areas, including the closure of its Austrian HAPPYBET
business and ongoing regulatory changes in various markets.
This post is originally published on FINANCEMAGNATES.
