Gambling technology group Playtech plc (LSE: PTEC) reported solid financial results for the first half of 2024 as B2B growth and Snaitech’s sale pushed it towards large gains in revenue.
In a trading update for the six-month period to 30 June 2024, Playtech reported an 11% increase in adjusted EBITDA for the first half of 2024, reaching €243 million ($271 million).
The supplier’s revenue grew by 5% year-on-year to €906.8 million, with the B2B sector seeing a 14% increase to €382.2 million. The company’s performance in the Americas was a standout, with regional revenue rising by 42%, thanks to key partnerships with operators like Caliplay, Wplay in Colombia, and Parx in the U.S.
In contrast, Playtech’s B2C division reported flat revenue at €532.4 million. Despite this, its flagship brand Snaitech maintained market dominance in Italy, although Snaitech’s revenue dipped by 1% to €483.6 million due to unfavorable sports betting results early in the year.
Playtech also reported a 9% reduction in net debt to €225.5 million and remains confident in meeting its financial targets for the B2B sector, with expected adjusted EBITDA between €200 million and €250 million for FY 2024.
Flutter Entertainment will acquire Snaitech, one of Italy’s largest gambling companies, for €2.3 billion ($2.6 billion), including debt.
The sale of Snaitech to Flutter is expected to close by Q2 2025, with Playtech planning to return between €1.7 billion and €1.8 billion to shareholders via a special dividend. This sale represents a decent return on Playtech’s investment in Snaitech, which it acquired in 2018 for €846 million.
Italy is the largest gambling market in Europe, although online penetration remains behind other countries such as the UK and Australia.
This acquisition marks Flutter’s second major deal within a week. Last Friday, the company announced it would acquire a 56% stake in Brazil’s NSX Group, the operator of Betnacional, for $350 million as it seeks to expand in the soon-to-be-regulated Brazilian market.
Flutter, the world’s largest gambling company, has been pursuing an aggressive international expansion strategy, particularly in the U.S., where it has seen a surge in new customers and revenue. The company, whose brands include Paddy Power and Poker Stars, moved its primary listing to New York from London earlier this year.
The acquisition will boost Flutter’s market share in Italy to about 30% when combined with its existing operations, which include Sisal, one of Italy’s largest online gambling operators.
