Playtech announced on Thursday that its revenue for the first half of the year rose by 10% year-on-year to reach €425.1 million, citing significant growth in its B2B sector in North America as a primary driver. Revenue from the U.S. and Canada surged 161% year-on-year, or 176% when adjusted for constant currency, totaling €56.9 million.
This growth can be attributed to the partnership with Hard Rock Bet in Florida, along with a strong performance from its Past Motor Racing (PMR) games. However, Playtech anticipates that this rate of growth will stabilize in the coming quarters.
The North American market remains a key area for Playtech. Jonathan Doubilet, the company’s U.S. general manager, mentioned in an interview that expectations for this region have been exceeded.
Additionally, revenue from Latin America also displayed notable growth during this half-year period, rising 29% to €100 million, fueled by customer acquisition during the World Cup in Mexico and Colombia. Playtech reported that Mexico experienced a 100% increase in average audience numbers compared to the 2022 World Cup, contributing to a strong influx of new customers during the event.
Overall, Playtech's total B2B revenue climbed 14% year-on-year to €394.8 million, while adjusted EBITDA saw a substantial increase of 75%, totaling €128.1 million. The UK market, however, was the only one to show a decrease in B2B revenue, falling 8% to €59 million, impacted by specific customer changes and an increase in the Remote Gaming Duty.
In Europe (excluding the UK), revenue grew by 2%. Regulated revenue comprised 83% of total B2B revenue, marking a 21% increase compared to unregulated revenue.
During an analyst call, CEO Mor Weizer stated that regulated revenue is projected to keep growing, noting the company's commitment to supporting markets that are expected to become regulated over time. "Unregulated is not illegal," Weizer emphasized, confirming that Playtech would continue investing in markets they believe will eventually adopt regulation. He also hinted at potential exits from some markets, emphasizing that over 85% of their revenues are now from regulated channels.
In contrast, the company’s B2C revenue, significantly impacted last year due to the sale of most B2C assets, including Snaitech and Happy Bet, reported a decline of 22% to €32 million. This segment now primarily consists of Sun Bingo in the UK, a white-label brand that Playtech is currently reviewing, particularly in the wake of the UK Remote Gaming Duty increase earlier this year.
Playtech mentioned that it is channeling investment into high-growth areas, particularly live casino sectors, while maintaining a focus on expanding its operations in the Americas, where it expects to achieve profitability this year.
