Playtech Increases 2024 EBITDA Guidance on Strong B2B Performance
Date: 2024-09-16 Author: Leon Pierce Categories: PAYMENT SOLUTIONS
In its half-year report today, September 16, Playtech said it expects its full-year 2024 adjusted EBITDA to exceed current guidance, although no details were provided on the numbers.
However, in March, Playtech indicated that it was aiming for €200-€250 million in B2B adjusted EBITDA and €300-€350 million in B2C.
Strong B2B Performance
The company noted that its B2B division had performed strongly in the first half of the year, driven by revenue growth in the Americas and a focus on tighter cost control. North America and Colombia saw significant growth.
Playtech’s joint venture with Caliplay also performed well in the first half of the year, as Playtech regained access to the business’s results. There had been a long-running dispute between the parties over services for which Caliplay had resumed payments.
Today, Playtech announced that it had concluded the legal proceedings and entered into a new agreement with Caliplay. As part of the deal, the company will acquire a 30.8% stake in Caliplay’s parent company, Caliente Interactive.
Snaitech sale in limbo
On the B2C side, Playtech reported growth for Snaitech, although sports betting suffered from poor sports results in Italy.
Despite the challenges, Playtech said in May that it remained “well positioned” to continue to benefit from a structural shift to a higher-margin business in Italy.
The company has not provided an update on its talks with Flutter over the sale of the Italian business for £2 billion. Flutter initiated due diligence in August.
“Negotiations are ongoing, although there can be no guarantee that a deal will be finalised or what the terms will be. Further announcements will be made as appropriate,” Playtech said in an update.
The full half-year report will be published on 30 September 2024.
