Playtech announced a 10% year-on-year revenue growth for the first half of the year, reaching €425.1 million. This increase is largely attributed to significant performance from its B2B operations in North America, described by the company as experiencing "exceptional growth."
The revenue generated from the U.S. and Canada jumped 161% year-on-year, equivalent to €56.9 million, or 176% when adjusted for constant currency. This surge is credited to the partnership with Hard Rock Bet in Florida and the popularity of its games powered by Past Motor Racing (PMR), although the company anticipates this performance will normalize in coming quarters.
North America remains a vital region for Playtech. Jonathan Doubilet, the company's U.S. general manager, shared with iGB's sister publication GGB in June that the company exceeded its regional expectations.
Additionally, Latin American revenue grew 29%, totaling €100 million, spurred by customer acquisition during the World Cup events in Mexico and Colombia. Playtech reported a 100% increase in Mexico's average viewership compared to the 2022 World Cup, leading to remarkable new customer acquisition during the tournament.
Total B2B revenue rose by 14% year-on-year to €394.8 million, while adjusted EBITDA soared 75% to €128.1 million. However, the UK market was the only area to report a decline, with B2B revenues dropping 8% to €59 million. Playtech attributed this downturn to specific customer changes and the increased Remote Gaming Duty.
In Europe, excluding the UK, Playtech experienced a modest 2% growth. Regulated revenue accounted for 83% of the overall B2B revenue, marking a significant 21% increase compared to unregulated revenue.
During an analyst call, Playtech CEO Mor Weizer emphasized that while regulated revenue will continue to rise, the company will support markets perceived to be on a path to regulation. "Unregulated is not illegal," he stated, underscoring ongoing investment in regulated markets and hinting at a potential withdrawal from others over time. He noted that regulated revenues have surpassed 85%.
B2C revenue faced challenges, declining 22% to €32 million, primarily due to the divestment of most of its B2C operations, including Snaitech and Happy Bet. This segment mainly consists of the UK’s Sun Bingo, which Playtech is reviewing following the recent hike in the UK Remote Gaming Duty.
On the investment front, Playtech is channeling resources into high-growth areas such as live casino, with the Americas continuing to be a primary focus. The company anticipates achieving profitability in the U.S. by the end of the year.
