Gambling technology group Playtech plc (LSE: PTEC) reported solid financial results for the four months to April 30 as B2B growth and Snaitech’s record performance pushed it towards large gains in revenue.
The trading update shows confidence in its growth prospects across both its business-to-business (B2B) and business-to-consumer (B2C) divisions for the medium term. Playtech opts for periodic updates rather than quarterly financial results.
During this period, Playtech reported a “solid” trading performance with strong underlying metrics, despite customer-friendly sporting results impacting its revenue.
Playtech’s B2B division performed well, driven by revenue growth in regulated markets and tighter cost control. Growth in the Americas, particularly the US and Canada, contributed significantly, albeit from a small base. Mexico and Colombia also performed strongly.
The company benefited from the rapid expansion of the live market and strength in its B2B casino offering. Playtech’s higher-margin, less capital-intensive SaaS business continued to show momentum, with strong revenue growth, new launches, and customer signings.
Snaitech boosts B2C growth in Italy
In the B2C segment, Playtech focused on its Italy-facing Snaitech brand, which showed strong performance in both online and retail betting segments. Despite tough comparatives from the previous year, which saw pent-up demand post-football World Cup, Snaitech maintained strong wagering volumes.
However, player-friendly sporting results in Italy partially offset these strong volumes. Playtech remains well-positioned to benefit from the structural shift to higher-margin online business in the country.
“Given the strategic progress being made across the business, the board remains confident in Playtech’s ability to execute on the exciting growth opportunities across both B2B and B2C divisions over the medium term,” Playtech stated.
Playtech also addressed its ongoing dispute with Caliplay, a joint venture with Mexico-facing operator Caliente. Caliplay is seeking to end its legal relationship with Playtech, having initiated legal proceedings to annul the partnership in October. Playtech has taken steps to resolve the dispute, alleging that Caliplay’s actions in Mexican court contravene contractual agreements established in 2014.
Despite the dispute, Playtech reiterated that Caliplay remains a key customer and maintains open dialogue to discuss a path forward. However, Playtech has been unable to obtain full financial information from Caliplay during this period. As a result, the revenue generated from additional B2B services is partly based on estimation, considering prior trends and information provided.
