Playtech surpasses market expectations as US expansion boosts H1 revenue
Isle of Man-headquartered Playtech, the world's leading publicly traded iGaming software developer, has exceeded market expectations by showcasing better-than-expected revenue growth in the first half (H1) of 2023.
For the six-month period of January-June 2023, Playtech reported a remarkable 8 per cent year-over-year rise in revenue, which reached €859.6 million. In the period under review, revenue from its B2C operations, encompassing brands like Snaitech, HAPPYBET, and Sun Bingo, surged 9 per cent to settle at €532.1 million, while revenue from B2B operations jumped 7 per cent to €334.5 million.
The aforementioned financial success of the company is attributed to healthy performance in key regions, such as Latin America and the United States.
Playtech Chief Executive Officer (CEO) Mor Weizer attributed success to the company’s diversified portfolio, spanning B2B as well as B2C markets in fast-growing regulated regions worldwide. The top executive highlighted the notable progress in the US market, where the company is expanding across multiple jurisdictions, owing to its partnerships like the landmark agreement with Hard Rock Digital. In addition, the company solidified its business in Latin America, thanks to its partnerships with companies like Caliente in Mexico and Galera.bet in Brazil. In Italy also, the company experienced considerable growth. Furthermore, the online gaming software developer leveraged Snaitech's presence for online expansion.
In total adjusted EBITDA for period under review, the company reported a 10 per cent year-on-year jump to reach €219.9 million, while costs of B2B operations increased by 8 per cent to €253.2 million. Total adjusted EBITDA for B2B operations jumped 5 per cent to settle at €81.3 million. The most significant portion of costs, roughly €148.6 million, came from expansion of the company’s business in the United States. Marketing & sales costs increased 24 per cent to €10.4 million, which reflected a return to pre-pandemic marketing levels.
In the energetic landscape of first-six months of this year, Playtech's triumph was unambiguously rooted in the fast-growing gaming market of the United States, where the company’s income soared by an astounding 43 per cent to a staggering amount of €99.7 million. It solidified the U.S. market as the "standout region" in the company’s global endeavours. The developer’s aforementioned strategic alliance forged with Caliente in Mexico played a pivotal role, while Brazil showed promising strides toward regulatory achievements. In short, Playtech's foray into the American arena was nothing short of spectacular.