Playtech announced on Thursday that its revenue for the first half of the year increased by 10% year-on-year, reaching €425.1 million. The growth was primarily attributed to remarkable performance in its B2B operations across North America.
In the U.S. and Canada, revenue surged by 161% year-on-year, or 176% on a constant currency basis, totaling €56.9 million. This impressive performance was bolstered by Playtech's partnership with Hard Rock Bet in Florida and the popularity of its games powered by Past Motor Racing (PMR). However, the company anticipates that this growth will stabilize in the coming quarters.
North America has solidified its status as an essential region for Playtech. Jonathan Doubilet, the U.S. general manager, remarked in June that the company had exceeded its initial expectations in the area.
Latin America also showed robust growth during this six-month period, with revenue increasing by 29% to €100 million, fueled by customer acquisitions stemming from the World Cup in Mexico and Colombia. Playtech reported a doubling of Mexico's average audience compared to the 2022 World Cup, which significantly contributed to excellent new customer acquisitions during the tournament.
Playtech's total B2B revenue climbed by 14% year-on-year to €394.8 million, while adjusted EBITDA rose sharply by 75% to €128.1 million. The only region that experienced a decline in B2B revenue was the UK, which reported an 8% drop to €59 million. This downturn was attributed to specific customer changes and the increased Remote Gaming Duty in the market.
Excluding the UK, Europe saw a modest growth of 2%. Notably, regulated revenue within the B2B segment constituted 83% of overall revenue—marking a 21% increase compared to unregulated revenue.
During the follow-up analyst call, Playtech CEO Mor Weizer stated that the firm expects continued growth in regulated revenue, while also expressing support for markets that may become regulated in the future. He emphasized that "unregulated is not illegal" and reiterated that Playtech would shift its focus towards regulated markets, although they might consider withdrawing from certain non-regulated markets. Currently, more than 85% of their revenues come from regulated sources.
On the other hand, the B2C revenue, which saw a significant decline last year following the sale of most of its B2C operations including Snaitech and Happy Bet, dropped by 22% to €32 million. This segment largely consists of Sun Bingo in the UK. Playtech is currently reviewing this brand due to the effects of the recent Remote Gaming Duty increase.
Furthermore, the company plans to invest in high-growth areas such as live casino, while continuing to focus its efforts on the Americas, where they anticipate reaching profitability in the U.S. by the end of the year.
