Playtech
plc (LSE: PTEC) announced stronger-than-expected financial results for the
first half of 2024, driven by strong performance in its B2B division and
strategic developments. The post-tax profit rose to €105.4 million, growing by
23% compared to €85.7 million reported in H1 2023.

Playtech Reports Strong H1
2024 Performance, Raises Full-Year Outlook

The company
reported a 5% increase in revenue to €906.8 million for the six months ended
June 30, 2024. Adjusted EBITDA rose 11% to €243.0 million, primarily
due to impressive growth in the B2B segment.

Playtech’s
B2B division saw a 14% revenue increase to €382.2 million, with Adjusted EBITDA
surging 38% to €112.3 million. The Americas region was a key driver, with
revenue growth
of 42% to €141.6 million.

“We’ve
executed our strategy to grow and improve the B2B business, delivering
broad-based growth with strong contributions across our key markets,” commented
Mor Weizer, the CEO of Playtech. “We’re also delighted to have agreed a revised
strategic agreement with Caliplay, our partner in Mexico.”

The company
made significant strides in its US and Canada strategy, with revenue in these
markets growing over 200% compared to H1 2023. Playtech expanded relationships
with major operators like Rush Street, BetMGM, and DraftKings, while also
successfully migrating Ocean Casino Resorts onto its platform.

Snaitech Sell

In a separate
development, Playtech reached an agreement to
sell its Snaitech division to Flutter for €2.3 billion. The company plans
to return €1.7-1.8 billion to shareholders following the transaction’s expected
closure in Q2 2025.

“A
couple of weeks ago, we announced the sale of Snaitech to Flutter for €2.3
billion and our plan to return €1.7 – 1.8 billion to shareholders,” Weizer
added. “Snaitech has been a key part of Playtech’s growth in recent years and
the team delivered another solid performance in the first half, despite the
impact of customer-friendly sporting results.

Based on
the strong first-half performance, Playtech now expects its full-year 2024
Adjusted EBITDA to be slightly ahead of market expectations. The company is on
track to achieve its B2B Adjusted EBITDA medium-term target range of €200-250
million in FY 2024, earlier than anticipated.

“We
are excited about what the future holds for the remaining Playtech business and
we see plenty of opportunities ahead of us,” Weizer added.

Over two
years ago, Playtech also sold Finalto (formerly TradeTech), its financial
division. The new owner of the company became Hong Kong-based Gopher
Investments, which paid $250 million in an all-cash sale.