Playtech Reports "Solid Trading Performance" in First Four Months of 2024

The London-listed Playtech plc (LSE: PTEC) has announced its trading update for the first four months of 2024, reporting a solid trading performance driven by “strong underlying trends.”

However, the company did not provide any specific numbers in the brief report published on Wednesday morning.

Playtech’s B2B Division Performs Well

Playtech's B2B division has shown visible growth during the first four months of 2024. The division's success can be attributed to revenue jumps in regulated markets and the benefits of tighter cost control measures. The Americas, particularly the US and Canada, have increased their contribution to the division's growth, while Mexico and Colombia continue to perform well.

“Live continues to take advantage of the market's rapid expansion, delivering solid growth in the period, while Casino is also showing strength,” the company commented in the trading update. “The higher margin, less capital-intensive SaaS business showed continued momentum with strong revenue growth, further launches and new customer signings.”

Looking ahead, Playtech's Board is optimistic about the company's capacity to capitalize on future growth opportunities in both the B2B and B2C sectors in the medium term due to the strategic changes occurring throughout the organization.

#PTEC PLAYTECH Trading update - B2B performed well, driven by revenue growth and tighter cost control. Fees owed by customer Caliplay remain uncollected and full financial information unobtainable

— The Dude (@Redpanda73) May 22, 2024

B2C Also Delivers Strong Underlying Performance

Snaitech, Playtech's B2C division, has performed well on an underlying basis, with wagers showing strength across both online and retail betting segments.

“As has been well-flagged by industry peers, strong volumes have been partly offset by customer-friendly sporting results in Italy,” the trading update added. “Notwithstanding this, we remain well-positioned to continue to benefit from the structural shift to the higher-margin online business in Italy.”

The B2C division contributed significantly to Playtech's revenue growth to €1.7 billion in 2023, representing a 7% increase compared to 2022.

Update on Caliplay and Board Changes

Caliplay, a significant client of Playtech, has been delivering robust performance despite the fact that Playtech has yet to receive the fees owed by the company. The two companies actively engage in discussions to find a mutually beneficial solution and strengthen their partnership.

Although Playtech is confident that it has a comprehensive understanding of most of Caliplay's revenue streams, obtaining complete financial data from Caliplay has proven challenging during the reporting period. Consequently, Playtech has had to rely on estimations for the revenue generated from the supplementary B2B services outlined in their agreement. These estimations are based on historical trends and the limited information provided by Caliplay.

In addition, Doreen Tan is set to join the Board as an Independent Non-Executive Director on 9 July 2024. With a career spanning more than 30 years at some of the world's leading financial institutions, Tan brings a wealth of experience to the table.