Playtech CEO Mor Weiser has criticized listed competitors for doing business on so-called "black markets". In a recent interview with the Evening Standard, Weiser expressed frustration at highly valued companies that, despite strong revenue growth and soaring share prices, operate in countries where online gambling is illegal.
Playtech emphasizes commitment to regulated markets against competitors' unregulated businessesWhile Weiser didn't name specific competitors, he emphasized that some have achieved astronomical growth while reducing their dependence on regulated markets. He emphasized Playtech's desire to grow in highly regulated markets and expressed concern that competitors were using funds raised in unregulated markets to penetrate regulated markets. He even mentioned that some operators are present in markets that are on the US sanctions list.
Playtech itself operates in some countries in Asia and Latin America, where online gambling is not regulated, but is not explicitly prohibited. However, the company experienced a decline in revenue in these markets in the first half of the year as it shifted its focus to countries with fully regulated rates environments.
Weiser emphasized that Playtech's main focus is on regulated markets, where they have achieved double-digit growth. He also noted that Playtech's shares are trading at a lower price than some of their competitors listed outside London.
Despite concerns about Playtech's valuation, Weiser praised London investors for their experience and understanding of the company's strategy, particularly regarding its commitment to highly regulated markets.
Playtech Achieves Impressive 8% Revenue Growth in 1H 2023Playtech reported strong financial results in the first half of 2023. The company reported revenue growth of 8% year-on-year to €859.6 million ($919.9 million) for the six-month period ending June 30, 2023. This impressive growth is attributed to the strong performance of Playtech's B2B division. which includes Snaitech, HAPPYBET and Sun Bingo, generating revenue of €334.5 million (US$358 million), up 7% year-on-year.
In addition to its B2B success, Playtech saw notable growth in the Americas, with revenues up 43% to €99.7 million (US$106.7 million), driven primarily by its expansion in Caliente and partnerships with numerous operators in various US states.
Despite challenges in some European markets, Playtech managed to achieve a 5% increase in revenue to €96.6 million ($103.3 million) in Europe excluding the UK. However, in the UK, revenue fell 2% to €62.9 million due to active availability checks. Notably, the company's B2C segment saw strong growth, with revenue up 9% to €532 million ($569.5 million), helped by Snaitech's strong performance in Italy and pent-up demand following the World Cup.
Playtech CEO Mor Weiser expressed optimism about the company's future, citing U.S. expansion plans, key partnerships and a strategic agreement with Hard Rock Digital. Weiser also highlighted Playtech's balance sheet strength, low leverage and strong cash generation, which further bolsters confidence in the company's prospects.