Playtech (LSE: PTEC) has announced its financial results for 2024 showing a post-tax profit of €157 million, 42% higher than a year ago. Overall, the company reported a mixed performance across its divisions as it prepares for a strategic shift following the planned sale of its Snaitech unit.

“Our Core B2B Business Had an Outstanding Year”

Total reported revenue from continuing and discontinued operations increased by 5% to €1.79 billion compared to $1.71 billion in 2023. Adjusted EBITDA grew by 11% to €480.4 million from €432.3 million reported a year earlier.

The B2B division saw strong growth in its core regulated markets, particularly in the Americas. B2B revenue increased by 10% to €754.3 million (2023: €684.1 million), with Adjusted EBITDA rising 22% to €222.0 million (2023: €182.0 million).

“Our core B2B business had an outstanding year, achieving the medium-term target we set two years ago ahead of schedule,” commented Mor Weizer, the CEO of Playtech. “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.”

In the B2C segment, revenue was up 2% to €1,052.7 million (2023: €1,037.0 million), while Adjusted EBITDA increased 3% to €258.4 million (2023: €250.3 million). The Snaitech division within B2C was impacted by customer-friendly sporting results throughout 2024.

€1.8 Billion Dividend on Snaitech Sale

Playtech has also entered into a definitive agreement to sell Snaitech to Flutter Entertainment for a total enterprise value of €2,3 billion. The company intends to pay a special dividend of between €1.7 billion and €1.8 billion following the completion of the sale, which is expected in Q2 2025.

“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,” added Weizer.

The company also announced a revised strategic agreement with Caliplay, its partner in Mexico. Under the new terms, Playtech will hold a 30.8% equity interest in Caliente Interactive, Inc., the new US-incorporated holding company of Caliplay.

The company reported strong performance in the US and Canada, with revenue growth of 126% in 2024, reaching €29.8 million. Playtech continued to expand its partnerships and product offerings in these markets.

Future Outlook and Targets

Playtech has set new medium-term financial targets for its continuing business, with an Adjusted EBITDA target range of €250–300 million and a free cash flow target of €70–100 million.

The company's net debt decreased to €142.8 million as of December 31, 2024 (2023: €282.8 million). Playtech made a €200.0 million partial repayment of its 2019 Bond in December 2024.

Looking ahead, Playtech reported a good start to trading in 2025, reflecting strong underlying growth trends in its B2B operations. However, the company faces challenges in certain areas, including the closure of its Austrian HAPPYBET business and ongoing regulatory changes in various markets.