Playtech Posts H1 Profit despite Retail Closures Impact

Gambling software provider Playtech released today its report for the six months ended June 30, 2021, outlining the importance of US as the company’s main driver for growth.

Summary of Financials

Revenue for the first six months of 2021 was €457.4 million ($563.5 million), down 4% compared to the €476.7 million ($559.2 million) reported in the first half of 2020. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) came out at €124.1 million ($145.6 million), up 13% on the €109.5 million ($128.4 million) for the respective 6-month period in 2020. That contributed to adjusted post-tax profit of €54.6 million ($64 million), up from just €3.5 million ($4.1 million) recorded in H1 2020.

These results demonstrate the quality of our technology and products, the significant progress made against our strategic priorities and wider momentum across Playtech’s operations.”

Mor Weizer, CEO, Playtech

Americas Drive Growth

Playtech outlined Americas as the group’s biggest growth driver, with revenue growth of 106% at constant currency year-over-year, as its B2B online Latin American business, Caliente, contributed with strong performance. Playtech’s Snaitech online business also performed well during the reported period, as the strong online performance was offset by the adverse impact from retail closures in Italy.

Playtech stated its valuation related to group’s options in Latin American agreements, Caliente, Wplay and others, holds an unrealized gain of €299.9 million ($351.8 million) as fair value adjustment directly impact reported post-tax profit.

In the US, Playtech outlined developments continued according to the strategy as it launched in Michigan with Parx and entered into partnerships with Scientific Games and Novomatic, as well as continued to progress with bet365 and BetMGM in New Jersey.

B2B Operations Continue Strong

The B2B gambling vertical posted H1 revenue growth of 16% to €267.2 million ($313.4 million). In the US and Latin America alone, revenue increased to €46.4 million ($54.4 million) from €22.9 million ($26.9 million) in H1 2020, up 106%.

The B2B business segment also saw growth for Caliente in Mexico alongside a contribution from Wplay in Colombia, while new launches in Costa Rica and Panama will strengthen the company’s presence in the region. In Europe, Playtech entered into a new strategic agreement with Holland Casino.

The segment experienced strong growth in Live Casino and continued diversification, with over 50 new brands added to the software-as-a-service (SaaS) offering of the company.

B2C Activity on the Rise

The B2C segment saw Snaitech deliver €51.6 million ($60.5 million) in adjusted EBITDA, up from €47.1 million ($55.2 million) for the respective period in 2020, despite the impact from retail closures, to establish itself as the leading retail and online sports betting brand in Italy.

Online revenue at Snaitech grew by 95% to €123.4 million ($144.7 million), while adjusted EBITDA was up 118% to €72.6 million ($85.2 million). The company also entered into an agreement for the sale of surplus land for €20 million ($23.5 million), most of which is expected to be received in installments in 2022.

White label business posted growth in adjusted EBITDA to €5.4 million ($6.3 million), up from €3.4 million ($4 million) in H1 2020, while Finalto, Playtech’s financial arm, was accounted as a discontinued operation with discussions with Gopher ongoing.