Playtech posts record FY22 revenue of €1.6bn fuelled by stellar Snaitech performance

Playtech has reported full-year revenue of €1.6bn (£1.41bn) for 2022, representing a year-on-year (YoY) increase of 33%, or 31% in constant currency (cc), on the €1.2bn in 2021.

Adjusted EBITDA was up 28% YoY to €405.6m, or 22% in cc, while adjusted post-tax profit surged 26% from €127.6m to €160.5m.

The firm’s B2B arm accounted for €632.4m of group revenue, a YoY increase of 14%. B2B adjusted EBITDA was also up from €139.2m to €160.2m, which the company praised given the backdrop of the war in Ukraine where 10% of Playtech’s workforce is currently based.

B2B revenue in Europe, excluding the UK, grew 31% on a cc basis, reaching €184.6m driven by the Netherlands with strong contributions from Poland, Spain and Ireland.

The Americas also continued to perform well for the supplier, with revenue increasing 27% on a cc basis, reaching €144.7m. This increase was attributed to Mexican operator Caliente and its strong performance in Brazil, with the supplier stating that the success in the South American nation offers significant opportunities going forward.

The only region that saw a decline for the supplier giant was Asia, where revenue fell 18% YoY due to competitive pressures and lockdowns in parts of the region in 2022. Playtech also incurred a bad debt provision of €15.4m due to collection delays which hit the firm in H1 2022.

Elsewhere, revenue from B2C operations rose 48% from €663.7m to €983.1m, with adjusted EBITDA growing from €177.9m to €245.4m.

Snaitech’s online performance performed ahead of expectations with revenue growth of 2% YoY, which works out at €234.5m, and overall adjusted EBITDA rose by 39% YoY to €254.2m.

Snaitech also maintained its number-one position across retail and online in Italy in 2022.

HAPPYBET, now integrated into Snaitech’s operations, continued to be loss-making for the firm with EBITDA of negative €10.8m. The firm has stated it has taken steps to upgrade HAPPYBET’s technology.

In the UK, the Sun Bingo brand saw revenue rise by 5% to €65.3m while EBITDA fell from €6.7m to €2m.

Regarding corporate and financial highlights, Playtech confirmed it had achieved strong cash generation in 2022, with an adjusted operating cash flow of €397m.

The firm sold Finalto in July 2022, a massive step in the group’s strategy to simplify its operations.

Playtech also disposed of Statscore to LSports, while simultaneously acquiring a 30.89% stake in LSports.

Mor Weizer, CEO of Playtech, said: “2022 was a year of considerable strength for Playtech in which we delivered record revenues and EBITDA, ahead of market expectations. All parts of the business contributed to this performance, with B2B powered by Europe (ex-UK) and the Americas and B2C’s impressive performance underpinned by Snaitech’s continued strength in the Italian market in both retail and online.

“Strategically, we have also continued to deliver, executing the successful sale of Finalto continuing our simplification strategy, and making great progress in North America with the launch of the IMS platform with Parx Casino in Pennsylvania and having signed several significant new deals, including Golden Nugget, WynnBET, Resorts and 888.”

Alongside the CEO’s comments, Neil Shah, director of investment research and consultancy firm Edison Group, gave his viewpoint on Playtech’s results.

Shah added: “This morning’s results show impressive growth in both revenues and earnings for Playtech. The company’s annual report highlighted a 33% increase in revenues from continuing operations, reaching €1.6bn, while adjusted earnings before tax, interest, depreciation and amortisation climbed 28% to a record €405.6m.

“This strong performance can be attributed to robust demand in Playtech’s B2B markets, particularly in regulated segments, which saw a 14% YoY growth with revenues of €632.4m.

“Additionally, the company’s B2C segment, which includes Italian sports betting and gaming firm Snaitech, experienced a significant 48% surge in revenues, totalling €983.1m. Overall, these results demonstrate Playtech’s thriving position and represents a notable start to the year,” Shah concluded.

Following the conclusion of 2022, Playtech agreed a long-term strategic partnership with Hard Rock Digital, which included the Israel-headquartered supplier purchasing an $85m minority stake in the US sportsbook operator.

On this new agreement and how the supplier has begun 2023, CEO Weizer said: “We have started the new financial year well and announced the signing of the landmark transaction with Hard Rock Digital, and in spite of the continued macroeconomic and political uncertainty, we remain confident in our future prospects, as well as in our ability to deliver value to all our stakeholders in a sustainable and responsible way.”

Playtech shares were up 0.37% to 551.06p in early trading.