Playtech Generates €1.6B Revenue in 2022 as B2B Markets Pick Up
- It ended the year with an adjusted EBITDA of €405.6 million.
- Its Italian subsidiary, Snaitech generated 39 percent higher adjusted EBITDA.
Playtech (LON: PTEC) published its financials for the fiscal year 2022, reporting a 33 percent jump in revenue to €1.6 billion due to strengthened B2B business and the performance of its subsidiary, Snaitech. Considering constant currencies, the figure inceased by 31 percent.
A Strong Year for Playtech
The company elaborated that it generated B2B revenue of €632.4 million from the regulated markets, which is 14 percent higher than the previous year. Its B2C revenue, which includes Snaitech and white-label, grew by 48 percent to €983.1 million.
The London-headquartered company reported an adjusted EBITDA of €405.6 million for the fiscal year 2022, which is 20 percent higher (22 percent on a constant currency basis). Sanitech's adjusted EBITDA alone grew by 39 percent to €254.2 million, driven by the reopening of retail sites in June 2021 after the pandemic. Playtech acquired a 70.6 percent stake in Snaitech, which operates retail and online sports betting platforms in Italy, for €291 million in April 2018 and then increased its ownership to 96.5 percent within a few months.
The performance of both the year-halves remains strong for the company. It generated €792.3 million in H1 2022 with an adjusted EBITDA of €203.8 million.
While the reported post-tax profit of the group for the year plummeted 94 percent to €40.6 million from €686.7 million, the adjusted figure strengthened by 26 percent to €160.5 million.
The adjusted diluted earnings per share were 51.5 euro cents, while the reported figure was 13 euro cents. These figures came in accordance with the company's expectations.
"2022 was a year of considerable strength for Playtech, in which we delivered record revenues and EBITDA, ahead of market expectations. All parts of the business contributed to this performance, with B2B powered by Europe (ex-UK) and the Americas, and B2C's impressive performance underpinned by Snaitech's continued strength in the Italian market in both retail and online," said the CEO of Playtech, Mor Weizer.
Moreover, Playtech closed the sale of Finalto last year to Hong Kong-based Gopher Investments. The deal was for a cash consideration of $228.1 million, which also brought in a profit on disposal of €15.1 million. Though Finalto was a highly profitable unit, Playtech simplified its core business with the sale.
A Conservaitve Outlook
After strong growth in the fiscal year 2022, Playtech is now conservative with its outlook for 2023 due to geopolitical and inflationary pressures. It now targets a medium-term adjusted EBITDA of €200 million to €250 million.
"We have started the new financial year well and announced the signing of the landmark transaction with Hard Rock Digital, and in spite of the continued macro-economic and political uncertainty, remain confident in our future prospects, as well as our ability to deliver value to all our stakeholders in a sustainable and responsible way," Weizer added.
Playtech (LON: PTEC) published its financials for the fiscal year 2022, reporting a 33 percent jump in revenue to €1.6 billion due to strengthened B2B business and the performance of its subsidiary, Snaitech. Considering constant currencies, the figure inceased by 31 percent.
A Strong Year for Playtech
The company elaborated that it generated B2B revenue of €632.4 million from the regulated markets, which is 14 percent higher than the previous year. Its B2C revenue, which includes Snaitech and white-label, grew by 48 percent to €983.1 million.
The London-headquartered company reported an adjusted EBITDA of €405.6 million for the fiscal year 2022, which is 20 percent higher (22 percent on a constant currency basis). Sanitech's adjusted EBITDA alone grew by 39 percent to €254.2 million, driven by the reopening of retail sites in June 2021 after the pandemic. Playtech acquired a 70.6 percent stake in Snaitech, which operates retail and online sports betting platforms in Italy, for €291 million in April 2018 and then increased its ownership to 96.5 percent within a few months.
The performance of both the year-halves remains strong for the company. It generated €792.3 million in H1 2022 with an adjusted EBITDA of €203.8 million.
While the reported post-tax profit of the group for the year plummeted 94 percent to €40.6 million from €686.7 million, the adjusted figure strengthened by 26 percent to €160.5 million.
The adjusted diluted earnings per share were 51.5 euro cents, while the reported figure was 13 euro cents. These figures came in accordance with the company's expectations.
"2022 was a year of considerable strength for Playtech, in which we delivered record revenues and EBITDA, ahead of market expectations. All parts of the business contributed to this performance, with B2B powered by Europe (ex-UK) and the Americas, and B2C's impressive performance underpinned by Snaitech's continued strength in the Italian market in both retail and online," said the CEO of Playtech, Mor Weizer.
Moreover, Playtech closed the sale of Finalto last year to Hong Kong-based Gopher Investments. The deal was for a cash consideration of $228.1 million, which also brought in a profit on disposal of €15.1 million. Though Finalto was a highly profitable unit, Playtech simplified its core business with the sale.
A Conservaitve Outlook
After strong growth in the fiscal year 2022, Playtech is now conservative with its outlook for 2023 due to geopolitical and inflationary pressures. It now targets a medium-term adjusted EBITDA of €200 million to €250 million.
"We have started the new financial year well and announced the signing of the landmark transaction with Hard Rock Digital, and in spite of the continued macro-economic and political uncertainty, remain confident in our future prospects, as well as our ability to deliver value to all our stakeholders in a sustainable and responsible way," Weizer added.