Playtech CEO Mor Weizer has highlighted 2024 as a “landmark year”, with overall revenue improving compared to the previous year.
The group also generated €2.3bn from the sale of Snaitech to Flutter Entertainment and intends to return €1.7bn to €1.8bn to shareholders via a special dividend.
According to Playtech, 2025 is off to a good start as well, “reflecting strong underlying growth trends in B2B”, while new medium-term targets for continuing operations have been set to take into account the revised agreement terms with Caliplay and underperforming businesses are being reviewed.
2024 results
Publishing its FY 2024 results, Playtech reported a 5% year-over-year increase in overall revenue to €1.79bn (FY 2023: €1.7bn). Overall adjusted EBITDA rose as well by 11% to €480.4m (2023: €432.3m), which is slightly ahead of previously raised expectations. Net debt was reduced by 49% to €142.8m (2023: €282.8m).
From continuing operations, overall revenue grew by 10% YoY to €848m (2023: €771.9m).
Weizer stated: “2024 was a landmark year for Playtech. We successfully reached an agreement to sell Snaitech to Flutter Entertainment, delivering significant value to our shareholders while enabling Playtech to refocus predominantly on its core strengths as a pure-play B2B business.
“Additionally, we are pleased to have secured a revised strategic agreement with Caliplay, our partner in Mexico, providing greater certainty and a strong foundation for future growth.”
B2B performance
For B2B operations, revenue rose by 10% YoY to €754.3m (2023: €684.1m) thanks to “broad-based strength across the group’s core markets”. Adjusted EBITDA increased by 22% to €222m (2023: €182m) with a margin expansion of 280bps after “strong operating leverage and tight cost control”.
The Americas were spotlighted as the biggest growth driver for the group, as revenue stood at €251.6m, a 19% increase from the previous year (2023: €211.9m).
US and Canada revenue was up 126% to €29.8m (2023: €13.2m), as Hard Rock Digital went live with casino and live casino content in New Jersey, dividends of €3.2m received and fair value of its equity investment rose to €141m (2023: €77m). Live revenue rose by 24%.
Operations in Latin America benefited from a strong Wplay performance in Colombia and a strong underlying performance from Caliplay. However, the additional B2B service fee (based on a percentage of Caliplay’s predefined profit) was “impacted by legal fees from the dispute, adverse FX, and interest charged on money owed to Playtech”.
Playtech also reached a revised strategic agreement with Caliplay and has since received all necessary approvals, with the completion set to take place on 31 March.
Regarding SaaS, revenue hit the top end of its medium-term target range ahead of schedule, increasing by 59% YoY to €80m (2023: €50.3m). Playtech’s AI-led safer gambling tool, BetBuddy, is also now operational with 23 brands in 14 jurisdictions.
Weizer commented: “Our core B2B business had an outstanding year, achieving the medium-term target we set two years ago ahead of schedule.
“The Americas saw substantial revenue growth, with Wplay in Colombia delivering a particularly strong performance. Meanwhile, our expansion in the US and Canada continues to gain momentum as we sign up and launch with a growing list of operators.”
Snaitech
For B2C, revenue grew by 2% YoY to €1.05bn (2023: €1.04bn), while adjusted EBITDA increased by 3% to €258.4m (2023: €250.3m).
Revenue from Snaitech, which is now described as discontinued operations following its confirmed sale to Flutter in September last year and is expected to be completed in Q2 2025, increased by 1% YoY to €956.1m (2023: €946.6m) as customer-friendly sporting results impacted performance.
Snaitech’s revenue from retail was flat at €697.6m (2023: €694.8m), while online rose by 3% YoY to €258.5m (2023: €251.8m).
As for continuing B2C operations, HAPPYBET reported an adjusted EBITDA loss of €11.8m (2023: €11.8m loss) as its Austria business closed in H2 2024 and the group began the sale process of the rest of the business in Germany.
Sun Bingo and other B2C operations revenue grew by 7% YoY to €78.9m (2023: €73.4m) while adjusted EBITDA dropped to €4.5m (2023: €6m) due to the impact of affordability checks in H2.
Playtech noted that overall reported post-tax and reported post-tax from continuing operations were both at a loss. Reported post-tax (continuing and discontinued operations) was a €24.2m loss (2023: €105.1m profit) while reported post-tax from continuing operations was a €136.5m loss (2023: €12.1m loss).
The group stated that both figures were impacted by higher impairment charges for sports, a smaller increase in fair value of derivative financial assets and the derecognition of brought forward deferred tax assets.
Playtech also agreed a new amended €225m five-year RCF facility, which will amend and replace the existing €277m RCF facility and will come into effect once the Snaitech sale has been completed. €200m of the firm’s €350m bond due March 2026 was repaid too, with the remaining balance to be repaid after the Snaitech sale completion.
Outlook
Looking ahead, the group has stated that it is off to a good start in 2025. It has a new medium-term Adjusted EBITDA target for continuing operations of €250m to €300m and a new medium-term free cash flow target for continuing operations of €70m to €100m.
Playtech added that it will increase focus on operational efficiencies, conduct a review of underperforming businesses and that it is confident in its ability to execute on growth opportunities.
Weizer concluded: “The combination of Playtech’s industry-leading technology with its exposure to attractive markets underpins our confidence in the Group’s new medium-term targets. We are excited about the future and the many opportunities ahead.”
