Playtech Posts Trading Update, Caliplay Fees Remain Uncollected

Playtech has published а trading update for the period from January 1 to April 30, reporting a solid trading performance and robust underlying trends. The company’s successes, however, were partly offset by the customer-friendly sporting results, the report noted.

In the four-month period outlined in the update, Playtech’s B2B division recorded strong performance thanks to a combination of revenue growth in regulated markets and tighter cost control-related benefits.

The company elaborated that it recorded growth across the US, Canada, Mexico and Colombia. In the meantime, the company’s Live division capitalized on the rapid expansion of the North American market, delivering solid growth. The Casino division also showed strength, Playtech pointed out. Last but not least, the SaaS business maintained a strong momentum and solid revenue growth.

In terms of B2C, the segment also recorded favorable performance in spite of certain difficulties. The Snaitech division performed well on an underlying basis as wagers continued to increase across both the retail and digital segments. The company managed to record favorable metrics despite tough comparatives in 2023.

As mentioned, the strong volumes were partly offset by customer-friendly sporting results, especially in Italy. However, Playtech remains optimistic about its online business in the country.

After evaluating the company’s strategic progress, Playtech’s board of directors reiterated its confidence in the business’s ability to capitalize on numerous medium-term opportunities across both the B2B and B2C segments.

Caliplay Is Yet to Pay Its Fees

In its trading update, Playtech also commented on the Caliplay situation, noting that the fees the latter company owes are yet to be paid. Still, Playtech described Caliplay as a “highly important customer” and said that the open dialogue with the company will continue.

For context, the Mexican gambling platform declined to settle its dues and had accumulated a staggering $131 million in fees it owes to Playtech as of November 2023. Caliplay’s refusal to play came amid a legal dispute between the two companies. For context, the Mexican company sought to terminate its contract with Playtech, sparking a major legal hurdle.

In its update, Playtech said that it believes it has visibility over “substantially all of the revenue generated by Caliplay’s business” and is certain that the latter company continues to perform strongly. However, Playtech was unable to obtain full financial information from Caliplay.

As a result, the revenue generated from the additional B2B services element of the agreement is partly based on an estimation, which takes account of prior trends and information provided.

Playtech statement

Playtech hopes to settle its conflict with Caliplay by the end of the year. The former company believes that its revenue from Caliplay will reach approximately $206 million in 2024.

On a separate note, Playtech added that Doreen Tan will join its board of directors as an independent NED on July 9, in line with a previous announcement.