On Thursday, Playtech announced that it experienced a 10% year-on-year revenue growth for the first half of the year, totaling €425.1 million. This increase was largely fueled by notable advancement in its B2B operations within North America, which the company described as showcasing "exceptional growth."
Revenues from the US and Canada surged by 161% year-on-year, or 176% in constant currency, reaching €56.9 million. This remarkable performance was attributed to partnerships such as that with Hard Rock Bet in Florida and the success of their games powered by Past Motor Racing (PMR). However, Playtech anticipates that these figures will stabilize in the upcoming quarters.
North America has proven to be a significant market for Playtech, with US general manager Jonathan Doubilet stating in June that they had exceeded their expectations in this region. Revenue from Latin America also saw a boost during this six-month period, climbing 29% to €100 million, driven by increased customer acquisition stemming from the World Cup events in Mexico and Colombia. During the tournament, it was noted that Mexico achieved a 100% increase in average audience compared to the previous World Cup, resulting in substantial new customer gains.
Total B2B revenues rose by 14% year-on-year to €394.8 million, while adjusted EBITDA escalated by 75% to €128.1 million. The sole market reflecting a decline in B2B revenue was the UK, which fell by 8% to €59 million, as Playtech explained that this sector was influenced by "certain customer-specific changes and increased Remote Gaming Duty." In Europe, excluding the UK, the business grew by 2%. Across the B2B segment, regulated revenue constituted 83% of total revenue, registering 21% growth compared to unregulated revenue.
During an analyst call following the announcement, Playtech CEO Mor Weizer declared that the company expects continued expansion in regulated revenue streams. He emphasized that the firm will maintain support for markets that they predict will eventually become regulated, asserting, "Unregulated is not illegal." He indicated that while Playtech is primarily focused on regulated markets, they may eventually pull out of certain non-regulated areas. For now, revenues from regulated markets account for more than 85% of the total.
In terms of B2C revenue, now primarily comprised of Sun Bingo in the UK, Playtech saw a decrease of 22%, resulting in €32 million, following significant operational downsizing that included the divestiture of Snaitech and Happy Bet. This segment is under review due to the effects of the UK Remote Gaming Duty increase earlier this year. Playtech has stated that it is channeling targeted investments into high-growth areas, such as live casino, with the Americas remaining a key target for future profitability, particularly in the US, which they expect to achieve by the end of this year.
