Playtech raises 2024 EBITDA forecast on strong B2B gains

In a half-year trading update this morning (16 September) Playtech said it expected its full-year 2024 adjusted EBITDA to be ahead of current expectations, although it did not provide a breakdown of the numbers.

However, Playtech did say in March it sought a medium-term B2B adjusted EBITDA of €200m-€250m and a B2C target of €300m-€350m.

Playtech B2B performing well

The group said its B2B division “performed well” in H1 thanks to revenue growth in the Americas and a focus on tighter cost control.

It saw strong growth in North America and a growing contribution from Colombia.

Its Caliplay joint venture also performed well in H1, as Playtech regained access to the business’ results. The two parties have been in a long-standing dispute over services fees that Caliplay has now recommenced payment for.

Playtech today announced an end to legal proceedings as a new deal between the two parties is established. Under the terms it will acquire a 30.8% stake in Caliplay holding company Caliente Interactive.

No update on Snaitech sale to Flutter
As for its B2C businesses, Playtech reported underlying growth for Snaitech, although sports betting did take a hit from unfavourable sporting results in Italy.

Despite tough results, Playtech said in May that it remains “well-positioned” to continue to benefit from a structural shift to a higher-margin online business in Italy.

The group did not provide an update on its talks with Flutter to sell the Italian business for £2bn. In August, Flutter had initiated a due diligence process.

“Discussions continue, although there can be no certainty that any transaction will ultimately be agreed, or as to its terms. Further announcements will be made as and when appropriate,” the Playtech update said.

Its full half-year results will be released on 30 September 2024.