After a strong 2022, London-listed Playtech (LSE: PTEC) has presented equally strong preliminary revenue results for H1 2023. According to today's (Thursday) report, adjusted revenues amounted to €859.6 million, growing by 8% compared to last year.

Playtech Reports Strong H1 2023

Playtech, a frontrunner in the financial trading industry, has shown significant growth, particularly in EBITDA, and is on track to outperform expectations for the entire year. The company's EBITDA saw a substantial rise of 19%, amounting to €207.3 million. Adjusted EBITDA rose to a record-high €219.9 million, increasing 10% compared to €199.1 million which was reported a year ago.

"We delivered our highest ever Adjusted EBITDA in the first half of 2023, demonstrating the benefits of the continued strategic and operational progress made in recent years," Mor Weizer, the CEO of Playtech, commented. "I would like to thank all our colleagues for their hard work and support in making this possible."

The company reported an increase of 8% in revenue, reaching €859.6 million, compared to €792.3 million in the same period in 2022. However, despite the strong revenue and EBITDA, the post-tax profit showed a visible decline, standing at €85.7 million compared to €94.3 million in H1 2022. This drop is attributed to changes in the fair value of derivative financial assets and deferred tax assets.

On a brighter note, the company reduced its net debt by 50%, bringing it down to €248.2 million. Playtech shares have strengthened since the morning in response to the positive results, rising by nearly 3% on the London Stock Exchange to 540 pence.

In the financial year 2022, Playtech saw an increase of 33% in its revenue, reaching €1.6 billion. This growth was primarily fueled by its robust B2B operations and the impressive results from its subsidiary, Snaitech. When evaluated in terms of constant currencies, the revenue growth stood at 31%. The firm disclosed that it amassed €632.4 million in B2B revenue from regulated markets, marking an uptick of 14% compared to the year before. Additionally, its B2C revenue, encompassing both Snaitech and white-label services, surged 48%, totaling €983.1 million.

Focus on Regulated Markets and Future Outlook

Playtech's B2B division showed an increase of 7% in revenue, largely driven by its focus on regulated markets. The Americas emerged as the standout region, with growth of 43% in revenue. The company also made significant strides in the US market, securing licenses in Ohio, Maryland, and West Virginia.

Playtech is optimistic about the second half of 2023, maintaining its medium-term EBITDA targets for its B2B and B2C divisions. The company's balance sheet and current cash generation allow it to pursue both organic and inorganic growth opportunities.

"We have started the second half of the year well and are on track to deliver FY23 Adjusted EBITDA slightly ahead of current expectations. With our proven strategy, robust balance sheet and operational expertise, we are confident in our ability to capitalize on the many growth opportunities ahead," Weizer added.