Playtech issues improved earnings target following strong start to 2023
B2B and B2C firm highlights “continued momentum” in first four months of year supported by “strong growth” from Snaitech and Caliente
Playtech has stated that it has made “good progress” against its 2023 strategic objectives and expects its full-year adjusted EBITDA to be slightly above current consensus expectations.
The London-listed company stated that its B2B and B2C divisions had enjoyed a good start to the year to 30 April with strong growth from Snaitech in Italy and Latam brand Caliente in particular.
Regarding its B2B operations, its footprint was expanded in Latam as Caliente grew its reach in the region, building on its position in its native Mexico.
Playtech pushed forward in the US with the purchase of a “low single-digit” minority equity ownership stake in Hard Rock Digital for $85m.
The firm confirmed its live casino business continued to enjoy solid growth in the opening quarter, and positive momentum also continued within its higher margin SaaS arm with new launches, revenue growth and new customer signups.
With its B2C operations, Playtech said the division had performed “very well”, mainly attributed to its Snaitech arm.
This level of performance was helped by the resumption of the normal footballing calendar following the World Cup in Qatar, with the firm’s retail section seeing strong growth. The online segment also gained notable growth in the opening quarter.
It was also revealed that the operational measures put in place with the B2C HappyBet brand are “beginning to take effect”, with EBITDA losses “reducing slightly” compared with last year.
Playtech said that despite growth in the opening quarter, it is expecting this to plateau later in the year due to “certain tailwinds that it experienced in Q1”.
Bosses expect full-year adjusted EBITDA to be slightly higher than initially anticipated.
Mor Weizer, CEO of Playtech, commented: “I am delighted to report that our strong start to the year has continued, with growth across both the B2B and B2C divisions.
“Our strategy of focusing on regulated or soon-to-be regulated markets, combined with Snaitech’s impressive performance in Italy, means we remain well positioned to make further progress and capitalise on the significant growth opportunities ahead.”
Playtech shares are trading at 617p, down 1.5% on the day.