Playtech Reports "Solid Trading Performance" in First Four Months of 2024

Playtech Reports “Solid Trading Performance” in First Four Months of 2024

Time Stamp: May 22, 2024 3:03 AM
Playtech Reports "Solid Trading Performance" in First Four Months of 2024 PlatoBlockchain Data Intelligence. Vertical Search. Ai.

The London-listed Playtech plc (LSE: PTEC) has announced its trading update for the first four months of 2024, reporting a solid trading performance driven by “strong underlying trends.”

However, the company did not provide any specific numbers in the brief report published on Wednesday morning.

Playtech’s B2B Division
Performs Well

Playtech’s
B2B division has shown visible growth during the first four months of 2024. The
division’s success can be attributed to revenue jumps in regulated markets and
the benefits of tighter cost control measures. The Americas, particularly the
US and Canada, have increased their contribution to the division’s growth,
while Mexico and Colombia continue to perform well.

“Live
continues to take advantage of the market’s rapid expansion, delivering solid
growth in the period, while Casino is also showing strength,” the company
commented in the trading update. “The higher margin, less capital-intensive
SaaS business showed continued momentum with strong revenue growth, further
launches and new customer signings.”

Looking
ahead, Playtech’s Board is optimistic about the company’s capacity to
capitalize on future growth opportunities in both the B2B and B2C sectors in
the medium term due to the strategic changes occurring throughout the
organization.

B2C Also Delivers Strong
Underlying Performance

Snaitech,
Playtech’s B2C division, has performed well on an underlying basis, with wagers
showing strength across both online and retail betting segments.

“As has
been well-flagged by industry peers, strong volumes have been partly offset by
customer-friendly sporting results in Italy,” the trading update added. “Notwithstanding
this, we remain well-positioned to continue to benefit from the structural
shift to the higher-margin online business in Italy.”

The B2C
division contributed significantly to Playtech’s revenue growth
to €1.7 billion in 2023, representing a 7% increase compared
to 2022.

Update on Caliplay and
Board Changes

Caliplay, a
significant client of Playtech, has been delivering robust performance despite the fact that Playtech has yet to receive the fees owed by the company.
The two companies actively engage in discussions to find a mutually
beneficial solution and strengthen their partnership.

Although
Playtech is confident that it has a comprehensive understanding of most
of Caliplay’s revenue streams, obtaining complete financial data from Caliplay
has proven challenging during the reporting period. Consequently, Playtech has
had to rely on estimations for the revenue generated from the supplementary B2B
services outlined in their agreement. These estimations are based on historical
trends and the limited information provided by Caliplay.

In
addition, Doreen Tan is set to join the Board as an Independent Non-Executive
Director on 9 July 2024. With a career spanning more than 30 years at some of
the world’s leading financial institutions, Tan brings a wealth of experience
to the table.

The London-listed Playtech plc (LSE: PTEC) has announced its trading update for the first four months of 2024, reporting a solid trading performance driven by “strong underlying trends.”

However, the company did not provide any specific numbers in the brief report published on Wednesday morning.

Playtech’s B2B Division
Performs Well

Playtech’s
B2B division has shown visible growth during the first four months of 2024. The
division’s success can be attributed to revenue jumps in regulated markets and
the benefits of tighter cost control measures. The Americas, particularly the
US and Canada, have increased their contribution to the division’s growth,
while Mexico and Colombia continue to perform well.

“Live
continues to take advantage of the market’s rapid expansion, delivering solid
growth in the period, while Casino is also showing strength,” the company
commented in the trading update. “The higher margin, less capital-intensive
SaaS business showed continued momentum with strong revenue growth, further
launches and new customer signings.”

Looking
ahead, Playtech’s Board is optimistic about the company’s capacity to
capitalize on future growth opportunities in both the B2B and B2C sectors in
the medium term due to the strategic changes occurring throughout the
organization.

B2C Also Delivers Strong
Underlying Performance

Snaitech,
Playtech’s B2C division, has performed well on an underlying basis, with wagers
showing strength across both online and retail betting segments.

“As has
been well-flagged by industry peers, strong volumes have been partly offset by
customer-friendly sporting results in Italy,” the trading update added. “Notwithstanding
this, we remain well-positioned to continue to benefit from the structural
shift to the higher-margin online business in Italy.”

The B2C
division contributed significantly to Playtech’s revenue growth
to €1.7 billion in 2023, representing a 7% increase compared
to 2022.

Update on Caliplay and
Board Changes

Caliplay, a
significant client of Playtech, has been delivering robust performance despite the fact that Playtech has yet to receive the fees owed by the company.
The two companies actively engage in discussions to find a mutually
beneficial solution and strengthen their partnership.

Although
Playtech is confident that it has a comprehensive understanding of most
of Caliplay’s revenue streams, obtaining complete financial data from Caliplay
has proven challenging during the reporting period. Consequently, Playtech has
had to rely on estimations for the revenue generated from the supplementary B2B
services outlined in their agreement. These estimations are based on historical
trends and the limited information provided by Caliplay.

In
addition, Doreen Tan is set to join the Board as an Independent Non-Executive
Director on 9 July 2024. With a career spanning more than 30 years at some of
the world’s leading financial institutions, Tan brings a wealth of experience
to the table.

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