Playtech announced a 10% increase in its revenue for the first half of the year, reaching €425.1 million, on the back of what it termed "exceptional growth" in its B2B sector in North America. This rise was particularly notable as revenue from the U.S. and Canada surged by 161% year-on-year—176% when adjusted for constant currency—totaling €56.9 million. Key contributors to this impressive growth were Playtech's partnership with Hard Rock Bet in Florida and the success of its games backed by Past Motor Racing (PMR), both trends likely to stabilize in the coming quarters.
North America has solidified its status as a pivotal market for Playtech, with U.S. General Manager Jonathan Doubilet remarking in June that the company had exceeded its previous expectations in this region. Additionally, Latin America also experienced notable growth, with revenues climbing 29% to €100 million, driven by enhanced customer engagement during the World Cup in Mexico and Colombia. Playtech highlighted a remarkable 100% increase in Mexico’s average audience compared to the previous World Cup, facilitating substantial new customer acquisitions during the event.
Overall, Playtech's total B2B revenue grew by 14% compared to the previous year, amounting to €394.8 million, while adjusted EBITDA saw a striking 75% increase, reaching €128.1 million. However, the UK market was an exception, reporting an 8% decline in B2B revenues to €59 million, attributed to "certain customer-specific changes and increased Remote Gaming Duty."
Excluding the UK, Europe recorded a modest 2% revenue growth. Regulated revenue represented 83% of total B2B revenue, showing a strong 21% increase over unregulated sectors.
During a subsequent call with analysts, Playtech CEO Mor Weizer expressed confidence in the ongoing growth of regulated revenue, stating a commitment to supporting markets that are expected to transition to regulated status. “Unregulated is not illegal,” he emphasized, noting that as investments funnel into regulated markets, Playtech may consider withdrawing from specific unregulated regions. Currently, regulated revenues comprise over 85% of their income.
In contrast, Playtech's B2C revenue faced a 22% decline to €32 million as it divested most of its B2C operations, which included brands like Snaitech and Happy Bet. The remaining portion primarily encompasses Sun Bingo in the UK—a brand under evaluation since March due to the impact of the recent Remote Gaming Duty hike.
Playtech is channeling investment into high-growth sectors such as live casino and remains focused on the Americas, anticipating profitability in the U.S. market by year-end.
