Playtech FY 2023 revenue jumps 7% as management confirms M&A is being explored

Playtech has reported a 7% year-on-year (YoY) increase in group revenue as the London-listed firm confirmed it remains on the hunt for acquisition targets.

Playtech saw total group revenue rise from €1.6bn to €1.7bn for full-year 2023 as B2C jumped 5% while B2B increased 8% over the same time period.

Group EBITDA rose 12% on a reported basis from €362.3m to €406.5m, while on an adjusted basis, the metric increased 9% from €395.4m to €432.3m.

Reported post-tax profit soared 159% to €105.1m, however, adjusted post-tax profit slipped 2% to come in at €156.8m.

Management described the firm’s B2B and B2C performances as “solid” as gains made in regulated markets pushed KPIs up.

Divisionally, Playtech’s B2B arm returned revenue of €684.1m, with regulated revenue rising 18% on the back of improvements in the Americas and Europe.

In the Americas, Playtech’s relationships with North Star in Canada and Parx in the US came to the fore, while its JV in Mexico, Caliplay, performed well too despite the legal issues hanging over the entity.

The group also championed its relationship with Hard Rock Digital after investing $85m in the business in return for a small stake last year.

Some downturns in the UK due to the “uncertain regulatory climate” and further declines in Asia were also highlighted.

Additionally, total adjusted EBITDA for the B2B arm rose 14% from €160.2m to €182m.

On the B2C front, revenue increased from €983.1m to €1bn as gains made for Snaitech and Sun Bingo offset a 9% downturn for HAPPYBET.

Snaitech saw revenue rise 5% during 2023 to €946.6m with adjusted EBITDA increasing to €256.1m.

The Sun Bingo and other B2C brands returned a revenue increase of 12% YoY to land at €73.4m while adjusted EBITDA leapt from €2m to €6m.

However, HAPPYBET saw a 9% decline in revenue and adjusted EBITDA loss of €11.8m, with bosses pointing to a “rationalisation of retail sites in Germany” as the core reason.

Additionally, Playtech confirmed it was “actively looking to accelerate the division’s growth through targeted M&A” following the unsuccessful move for SKS365 last year.

Lottomatica acquired the Italian brand in a deal worth more than €600m to emerge victorious in a reported three-way battle including Flutter Entertainment.

Playtech holds cash and cash equivalents of €516.6m as of 31 December 2023, up from €426.9m the year prior.

Looking ahead to 2024, Playtech cited a strong start to trading this year, with growth across the Americas for its B2B arm and continued momentum for B2C operations.

A medium-term adjusted EBTIDA target for B2B has been set at a midpoint of €225m while B2C targets have a midpoint of €325m.

Mor Weizer, Playtech CEO, said: “Playtech performed very strongly over the year and delivered adjusted EBITDA up 9% to €432m, ahead of previously raised expectations.

“With regards to outlook, we are well set to achieve our medium-term targets for both B2B and B2C divisions and have a high-quality balance sheet giving us the flexibility to pursue both organic and inorganic growth opportunities.

“In summary, we remain very confident in our ability to execute our strategy and to continue delivering value for our shareholders,” he added.