Playtech revenue from continuing operations up to €848m in full-year 2024

Playtech has posted a 10% increase in adjusted revenue for its continuing B2B operations in full-year 2024 as the company prepares for the €2.3bn sale of Snaitech to Flutter Entertainment.

Revenue from continuing operations, which include the group’s B2B operations and small B2C businesses HAPPYBET and Sun Bingo, increased from €771.9m in 2023 to €848m (£706.7m)

Adjusted EBITDA for those business segments leapt 22% from €176.2m to €214.7m. However, on a reported basis, EBITDA dropped 16% from €152m to €127.7m.

Adjusted post-tax profit skyrocketed 314% from €14.2m to €58.8m.

When including the contribution from Snaitech on a full-year basis, revenue was up to €1.8bn, while adjusted EBITDA increased 11% to €480.4m.

London-listed Playtech said the eventual sale of Italy-facing Snaitech, which is due to close in Q2, would allow it to transition to a “pure-play B2B business”.

B2B revenue for the 12 months jumped from €684.1m to €754.3m, with adjusted EBITDA rising from €182m to €222m.

Revenue from the Americas was up 22% on a constant currency basis to €251.6m, making the region Playtech’s largest revenue contributor.

Latam took the lion’s share of revenue within the Americas segment at €221.8m, with Playtech citing its deals in Colombia and Mexico as core drivers.

Europe, excluding the UK, saw revenue dip 1% to €198.7m. Meanwhile, UK revenue climbed 8% to €136.2m.

Snaitech revenue was up 1% to €956.1m, while HAPPYBET shuttered its Austrian operations in H2.

Playtech said it had started a sales process for the remaining German operations, but should no such deal come to fruition, it would consider closing the business.

Sun Bingo and other B2C brands reported revenue of €78.9m and a fall in adjusted EBITDA to €4.5m due to the impact of affordability check measures in the UK.

In terms of other disposals, Playtech is set to sell its PokerStrategy.com brand, with talks having been at an “advance[d] stage” as of year’s end.

Playtech has already received $500,000 as a non-refundable deposit from the unnamed buyer.

Looking ahead, Playtech has set medium-term financial targets as it transitions to its B2B stance, with adjusted EBITDA to be in a range of €250m to €300m.

Free cash flow should land between €70m and €100m. Playtech said the guidance was boosted by its new and revised structure with Caliplay in Mexico.

Mor Weizer, Playtech CEO, said: “2024 was a landmark year for Playtech. We successfully reached an agreement to sell Snaitech to Flutter Entertainment, delivering significant value to our shareholders while enabling Playtech to refocus predominantly on its core strengths as a pure-play B2B business.

“Our core B2B business had an outstanding year, achieving the medium-term target we set two years ago ahead of schedule. The Americas saw substantial revenue growth, with Wplay in Colombia delivering a particularly strong performance.

“Meanwhile, our expansion in the US and Canada continues to gain momentum as we sign up and launch with a growing list of operators.

“The combination of Playtech’s industry-leading technology with its exposure to attractive markets underpins our confidence in the group’s new medium-term targets. We are excited about the future and the many opportunities ahead.”

Playtech’s shares were flat around 736p following the earnings release.