There May Be Trouble Ahead But Mor’s The Weizer As Playtech Unveil Impressive FY23

Omnichannel Playtech continues to go from strength-to-strength under the astute leadership of CEO Mor Weizer as the iGaming software titans post an impressive seven percent year-on-year increase in revenue to €1.71 billion (£1.46bn) this FY23, but there may be significant Mexican legal trouble looming on the fiscal horizon.

“Playtech performed very strongly over the year and delivered Adjusted EBITDA up nine percent €432 million (£369.89m), ahead of previously raised expectations,” affirmed Weizer.

“As well as delivering excellent financial results, the Group made important strategic and operational progress, including our expansion across the US.

“Our B2C division delivered revenues exceeding €1 billion for the first time, and Snaitech remains well positioned to benefit from the under-penetration of the online segment, given the strength of the brand, the continuous improvements to apps and technology, and a broadening of its content offering.”

Nevertheless the FTSE250 company may have major legal problems ahead because of an ongoing dispute over licensing fees with its Mexican partner Caliente over their Caliplay joint-venture.

Playtech claims Caliplay owes them the equivalent of €86.5 million (£74.06m) in fees unpaid since July last year.

And the dispute is now set to go to court in October unless it can be amicably settled.

Mexican Stand-off

Meantime, returning to more immediate financial matters, Playtech’s B2B revenue grew eight percent, year-on-year, to €684.1 million (£585.74m) in FY23, with Adjusted EBITDA up 14 percent to €182 million (£155.83m).

Caliplay, the focus of the ongoing fees dispute, paradoxically, has been a major driver of this winning growth.

“Caliplay remains a highly important customer for Playtech and we have been in dialogue with them to discuss resolving the situation but there can be no certainty on the outcome,” noted Playtech Chief Financial Officer Chris McGinnis at this week’s earnings call.

Turning to Playtech’s B2C division–effectively their online market-dominant Italian venture, Snaitech–, the company reported revenue of €1.04 billion (£890m), an increase of five percent, compared to 2022. Adjusted EBITDA for the vertical hit €250 million (£214.05m), up six percent year-on-year.

Summarized Playtech Chair Brian Mattingley:

“Playtech has built on the strong strategic and operational progress of recent years and continues to cement its leadership across both B2B and B2C sectors.

“While there were many challenges in 2023, the consistent quality at the core of our business meant that we were able to upgrade our expectations during the year and deliver a strong financial performance.”

With Playtech’s B2C division having delivered more than €1 billion of revenue (£856.23m) for the very first time in 2023, this year Mor Weizer’s coming Omnichannel will be looking for even more.

“We remain very confident in our ability to execute our strategy and to continue delivering value for our shareholders,” he said.

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