Despite a 4 percent revenue reduction, Playtech Plc’s B2B verticals had a “very strong performance” in the first half of 2021, achieving objectives across three continents.
The FTSE 250 gaming technology group informed stakeholders in its interim trading report, following up on its July update, that total revenue had fallen to €457.4 million (H1 2020: €476.7 million), but that this was overshadowed by substantial profits of €401.9 million, compared to a loss of €22.1 million in H1 2020.
Meanwhile, adjusted EBITDA increased by 13percent to €124.1 million (2020: €109.5 million), with the business stating the total performance as “in line with expectations at the start of the year.”
The company reported sales growth of 16 percent to €267.2 million (H1 2020: €229.7 million), overcoming challenges incurred as a result of the COVID-19 pandemic.
50 new brands added
The firm’s B2B operations were singled out for praise, with over 50 new brands added to its SaaS offering since debut, increasing the total to 250, and revenue growth of 128 percent.
Mor Weizer, Playtech CEO said: “I am delighted by our strong strategic and operational progress to date in 2021, despite the ongoing challenges posed by the pandemic.
“These results demonstrate the quality of our technology and products, the significant progress made against our strategic priorities, and wider momentum across Playtech’s operations.”
In Europe, Italy proved to be Playtech’s biggest major success, with revenue growth of 95 percent to €123.4 million and Adjusted EBITDA increase of 118 percent to €72.6 million for the company’s B2C sports betting and retail Snaitech subsidiary.
Snaitech’s performance was bolstered by a €20 million excess land sale in July, as well as a strategic deal with Holland Casino for software and services outside of Italy.
US and LatAm
However, the group’s most substantial growth was in the United States and Latin America, where sales increased by 106 percent to €46.4 million (H1 2020: €22.9 million).
The Caliente brand was expanded in Mexico, and the company solidified its LatAm presence with launches in Costa Rica and Panama, as well as a ‘crowning contribution’ in Colombia through Wplay.
Meanwhile, in the United States, the company highlighted its new relationships with Scientific Games and Novamatic in New Jersey, as well as existing agreements with bet365 and BetMGM in the state, as well as the start of operations in Michigan through Parx Casino.
Playtech remains worried about the future of the macroeconomic picture because to the ongoing COVID-19 epidemic and the possibility of further lockdowns across several jurisdictions, despite reporting a ‘strong start’ to H2 operations in July and August.
“Looking forward, given the strong H1 performance, the momentum in the business and the easing of lockdown restrictions, we are confident of Playtech’s prospects for the remainder of 2021 and beyond,” Weizer concluded.