Playtech has reported an 11% increase in H1 adjusted EBITDA to €243m ($271m), driven by growth in its B2B business.
The supplier also announced the sale of its Italian sports betting subsidiary, Snaitech, to Flutter Entertainment for €2.3bn, as part of its ongoing strategy to focus on core B2B operations.
For the period ending 30 June 2024, Playtech’s revenue increased by 5% year-on-year to €906.8m. The company attributed much of this growth to the B2B sector, which saw a 14% rise in revenue to €382.2m.
Playtech’s operations in the Americas performed particularly well, with revenue in the region up by 42%, benefiting from partnerships with key operators including Caliplay, Wplay in Colombia and Parx in the US.
By contrast, the B2C division reported flat revenue at €532.4m. Despite this, Playtech’s flagship Italian brand, Snaitech, maintained its market position. However, revenue for Snaitech declined by 1% to €483.6m, primarily due to the impact of customer-friendly sporting results in early 2024.
Playtech’s agreement to sell Snaitech to Flutter Entertainment, announced earlier this year, values the company at €2.3bn. The transaction is expected to close by the second quarter of 2025.
Playtech plans to return between €1.7bn and €1.8bn of the proceeds to shareholders via a special dividend. The sale marks a significant return on Playtech’s initial investment in Snaitech, which it acquired in 2018 for €846m.
In addition to the Snaitech sale, Playtech’s net debt decreased by 9% to €225.5m. Looking ahead, Playtech remains on track to meet its medium-term financial targets for the B2B sector, which is expected to generate adjusted EBITDA between €200m and €250m in FY 2024.
This latest development follows previous news of Playtech’s expansion strategy in the US and Canada, which has seen the company grow its market presence in both regions over the past year.
The agreement with Flutter further supports Playtech’s plan to focus on its core B2B business, while Flutter aims to build on its recent acquisition of NSX Group in Brazil.
