Playtech forecasts market as U.S. growth drives superior first-half sales
Playtech, the largest global publicly traded online gaming software developer based in Isle of Man Douglas, should beat market expectations in 2023 due to outstanding revenue throughout the first half of 2023. In addition, as reported by IGB News, the positive results in booming countries such as Latin America and the United States resulted in excellent returns.
Different portfolios are the main reasons for success:
In compliance with the details provided in the trading update for the first half of 2023 ending June 30, 2023, Playtech said it had increased 8% annually to €859.6 million. In retrospect, sales in the B2C operating division, including HAPPYBET, Sun Bingo and Snaitech, rose 9% to €532.1 million, while sales in the B2B operating division rose 7% to €334.5 million. Commenting on the company's success, CEO Mor Weizer said, "Our success during this time has been driven by a diverse portfolio across B2B and B2C in some of the fastest-growing regulatory markets around the world. After establishing a foundation in the United States, we are expanding our offerings across multiple states and confident of our future prospects under our groundbreaking agreement with Hard Rock Digital. In addition, we have further consolidated our leadership in Latam with Caliente in Mexico and Galera.bet in Brazil. Italy's Snaitech enjoyed another boost as management continued to utilize its retail presence to grow its online business."
Important deals:
Looking at the aforementioned B2B business, the United States was a "remarkable region" with 43% increase in income to €99.7 million over the aforementioned period. While Mexico's Caliente remains an important "motor" of this growth, Brazil is also moving toward regulation.
However, the company has made remarkable progress in reaching the U.S. throughout that time with significant contracts and "state launches." In connection with this, it has signed contracts with a small number of operators operating in many U.S. states, such as Rush Street Interactive, 888 and PokerStars, leading the company to enter the regulatory market in 10 U.S. states.
In Europe, "ex-UK" revenue rose 5% to 96.6 million euros, and growth was felt in many countries, including Spain and Poland. But, thanks to intensifying competition and strict gambling regulations, it has balanced low returns in the Netherlands. The strict regulator also hit UK revenues with precautions related to "appropriateness checks" of Playtech customers, resulting in a 2% drop in revenues to €62.9 million.
Increased retail:
With regard to the aforementioned B2C business, Snitech, the company's largest brand, saw very good growth during the first half of 2023, with a 10% increase in revenue compared to the first half of 2022. The main reason for that is the online business, which has recorded a 9% increase in revenue and a 12% increase in revenue in the retail sector, but within the retail sector there is a 24% increase in retail betting sales compared to the first half of 2022, driven by rising demand from the FIFA World Cup as Italy did not participate in the tournament.
For HAPPYBET, income fell 4% in the same period compared to the first half of 2022, a result of "German retail site rationalization." In Austria, however, income increased thanks to the overall expansion of retail locations in Vienna and Tyrol, balancing the decline in Germany.
And finally, Sun Bingo and its additional B2C division rose 8% to 34.1 million euros. The main reason for the growth was increased marketing spending at the end of last year, during the aforementioned FIFA World Cup, resulting in greater profit growth with "high contribution margins" during the first half of 2023
Improve your confidence:
For consolidated operating gross adjusted EBITDA for the period, it said Playtech increased 10% annually to 219.9 million euros. In addition, B2B operating costs increased by 5% to EUR 253.2 million, or 8% per year, and B2B total adjusted EBITDA increased by 5% to EUR 81.3 million. However, businesses accounted for the largest share of the cost, rising 2% to 148.6 million euros, thanks mainly to "U.S. expansion spending." Marketing and sales costs rose 24% to 10.4 million euros, mainly on the back of a full return of marketing work to pre-COVID-19 levels.
In addition, for B2C Adjusted EBITDA, the company posted a margin of 26% with a 14% increase to €138.6m. Therefore, Snaitech reported a 12% annual increase in EBITDA to €141.9m, and a 9% cost increase was also "absorbed" by a strong increase in income.
However, pre-tax profit from "continued operations" fell to EUR 79.6 million from EUR 103.7 million, which involves a reduction in "unrealized fair value changes in derivative financial assets related to various call options." Gains after taxation from "continued operations" fell to 3.1 million euros from 71.4 million euros. In a related development, CEO Weizer said, "The growth achieved in the first half of the financial year gives the Board additional confidence in meeting Playtech's mid-term adjusted EBITDA targets for B2B €2 million-€250 million and B2C €3 million-€350 million. We delivered record-high adjusted EBITDA in the first half of 2023, demonstrating the benefits of ongoing strategic and operational advances made in recent years. We started the second half of the year well and are on track to slightly beat current expectations for FY23 adjusted EBITDA. With proven strategies, strong balance sheets and operational expertise, we are confident of our ability to leverage many growth opportunities ahead."
During 2022, intensive growth in Playtech's B2B segment and Snaitech's operations resulted in 1.6 billion euros in profit growth, up 33% from 1.21 billion euros reached in 2021. In addition to this revenue, Adjusted EBITDA increased an additional 28% to 405.6 million euros a year earlier from 317.1 million euros in 2021.
https://www.outlookindia.com/outlook-spotlight/2023년-한국을-대표하는-카지노-사이트-best-10--news-326663