Playtech, the leading technology company founded more than two decades ago, released its results covering the six months ended June 30, 2024. On Monday, the company disclosed its interim financial results, pointing to a single-digit revenue increase while acknowledging it remains on track to meet medium-term targets in FY24.
The Company’s H1 2024 Revenue Increased by 5%
The latest financial update released by Playtech confirmed that the company’s H1 2024 revenue hit €906.8 million ($1.01 billion). Compared to the €859.6 million ($958.8 million) result from the corresponding period last year, the latest figure marked a 5% increase.
Besides revenue, Playtech posted a strong increase in EBITDA for the six months ended June 30. In total, the company’s EBITDA in H1 this year hit €233.6 million ($260.5 million), a result that marks a notable 13% increase when compared to the €207.3 million ($231.2 million) figure from 2023.
A breakdown of the €906.8 million ($1.01 billion) figure revealed that Playtech’s business-to-business (B2B) division recorded an increase with its revenue hitting €382.2 million ($426.3 million). However, the company’s business-to-consumer (B2C) division results were on par at €532.4 million ($593.6 million).
The latest announcement comes after earlier this month, Playtech agreed to the terms of a revised deal with Caliplay. Recognized as a growth initiative, the collaboration saw Playtech hold a 30.8% equity interest in Caliente.
Besides the aforementioned growth initiative, the company also previously uncovered its intentions to sell its B2C business, Snaitech, to Flutter Entertainment in a whopping £2 billion ($2.57 billion) deal. While the acquisition reaffirms Flutter’s intention to continue growing, it is also expected to benefit Playtech’s shareholders.
Focusing on the aforementioned acquisition, Mor Weizer, Playtech’s CEO, wrote: “We are excited about what the future holds for the remaining Playtech business and we see plenty of opportunities ahead of us.” With the processes gaining traction, Flutter anticipates finalizing the acquisition soon.
Missed Opportunities Bring “Strategic Irrelevance” Risks
In light of the recent strategic business moves and financial update, analysts commented on the topic, pointing to an optimistic, yet cautious outlook for Playtech. Expert analysts with Regulus Partners, quoted by Next.io, spoke about the company’s intentions to sell its B2C business.
While the experts acknowledged that such a move can deliver growth for Playtech, they said that caution is needed. Primarily this is the case because of the competitiveness of the B2B sector and according to Regulus Partners, unless Playtech doesn’t seize opportunities within the online gambling sector, it may face the risk of becoming “a strategic irrelevance.”
On the bright side, in Latin America, as well as the US and Canada, two significantly important markets for Playtech, the company demonstrated resilience and saw its revenue increase year-over-year. In the first half of this year, Playtech’s revenue in the USA and Canada recorded a staggering increase of 233%, while in Latin America, it soared by 34% year-over-year.