Playtech’s Positive Momentum in B2B and B2C Sectors Bodes Well for 2023
Playtech plc (LSE: PTEC) reports promising trading outcomes for the period from January 1 to April 30, 2023. With a solid strategy at its core, Playtech has demonstrated significant advancements across both the B2B and B2C divisions, driven notably by sustained growth from partnerships with Snaitech and Caliente. Despite an anticipated moderation in growth rates later in the year due to specific early-year benefits, the Board is projecting an Adjusted EBITDA for 2023 that could exceed current consensus expectations.
In the B2B sector, Playtech’s commendable performance in the initial months of 2023 was fueled by its operations in regulated markets. The company successfully enhanced its leading presence in Latin America, with Caliente continuing to showcase significant growth, fortifying its leadership position in Mexico. Concurrently, Playtech achieved strategic advancements in the U.S. Earlier this year, they signed a pivotal agreement with Hard Rock Digital, propelling their U.S. strategy forward. This agreement also saw Playtech investing approximately $85 million (circa €80 million) for a minor equity ownership stake.
Playtech’s Live Casino business, a strategic cornerstone for the company, effectively leveraged the market’s rapid expansion, showcasing robust growth. Their Software as a Service (SaaS) business segment also maintained its momentum, reporting substantial revenue growth, successful product launches, and new customer acquisitions.
Meanwhile, the B2C division has also shown strong performance, largely fueled by Snaitech. Following the World Cup, the resurgence of football coupled with pent-up demand provided a boost at the start of the year, with the retail segment showing particularly robust growth. The online sector also experienced considerable growth. Additionally, the strategic and operational measures implemented within the HAPPYBET business started to bear fruit, evident in a slight reduction in EBITDA loss compared to the same trading period last year.
In terms of board changes, Ruby Yam will join the Board as an Independent Non-executive Director from June 1, 2023. On the other hand, John Krumins has advised that he will step down after the Group’s interim results are published in September 2023.
Looking ahead, Playtech’s strong start to 2023, driven by Snaitech and Caliente, is in line with the industry’s structural growth drivers. While growth rates are expected to slow slightly later in the year, the Board anticipates that 2023 Adjusted EBITDA may surpass current consensus expectations. With the business’s current momentum, the Board expresses confidence in Playtech’s capacity to seize and capitalize on promising growth opportunities across both B2B and B2C sectors in the medium term.
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.”