Playtech posts H1 revenue growth driven by North America and Caliplay partnership
Date: 2024-09-30 Author: Leon Pierce Categories: PAYMENT SOLUTIONS
Playtech saw revenue increase 5.5% year-on-year in H1 2024, reaching €906.8 million (£756.1 million/$1.01 billion). The company also saw profit growth in the period, turning a loss from the previous year into a positive result.
B2B growth was notable, with total B2B revenue up 14.3% to €382.2 million. Playtech CEO Mor Weiser credited the company’s strategic focus on B2B growth for this success, confirming that the H1 results are “proof” of the company’s progress.
“We are executing on a strategy of growth and improvement in B2B, resulting in sustainable growth with strong performance in key markets, high operating leverage and tight cost control,” Weiser emphasized.
Growth in North America and the Caliplay agreement
Weiser also mentioned significant growth in North America. B2B revenue in the US and Canada increased by more than 230% compared to last year. Although this is only a small part of overall B2B revenue, Weiser noted that “there is a huge opportunity” for further growth.
“Our plans to expand our presence in the US and Canada are already paying off, with revenue tripling over the period,” he added. Weiser also emphasized that customers in the US can already enjoy Playtech games in several states, and soon customers outside the US will be able to play games streamed directly from Las Vegas, thanks to a new agreement with MGM Resorts.
In addition, Weiser announced the end of the dispute with Caliplay. On September 16, Playtech confirmed a revised strategic agreement with operator Caliente, ending a long-running legal dispute between the two parties.
“We are pleased to have agreed a new strategic agreement with Caliplay, our partner in Mexico, which positions us to take advantage of significant growth opportunities in the coming years,” said Weiser.
Playtech’s Future After the Sale of Snaitech
The sale of Snaitech to Flutter for €2.3 billion will transform Playtech, making it an almost entirely B2B provider. “Snaitech has played a key role in Playtech’s growth in recent years,” said Weiser, adding that the team continues to deliver strong results despite adverse sporting events.
A look at the B2B results shows that revenues in Latin America grew 34% to €128.3 million, making them the main contributor to B2B revenues. Meanwhile, revenues in Europe, excluding the UK, remained flat at €97.8 million.
In the UK, revenue increased by 4.9% to €66 million, driven by growth from both existing and new licensees. Total B2C revenue was flat year-on-year at €532.4 million, driven by a slight decline in Snaitech revenue.
Playtech ended the first half of the year with a net profit of €10 million, up 222.6% year-on-year. Weiser expressed confidence in the company’s future prospects: “With a clear strategy and a strong team, we are confident in the future of Playtech.”
