Playtech has reported a notable 10% increase in revenue for the first half of the year, reaching €425.1 million. This growth can be attributed to what the company termed "exceptional growth" in its B2B segment across North America. In fact, revenues from the US and Canada surged by 161% year-on-year, or 176% when adjusted for constant currency, totaling €56.9 million.
This impressive performance is linked to Playtech's partnership with Hard Rock Bet in Florida and the popularity of its games under the Past Motor Racing (PMR) branding. The company anticipates that these figures will stabilize in the upcoming quarters.
Playtech's position in North America remains strong, with US general manager Jonathan Doubilet stating in June that the company has surpassed its own expectations in the region.
The growth trajectory also extended to Latin America during this six-month period, where revenue rose 29% to €100 million. This increase was primarily fueled by customer acquisition efforts surrounding the World Cup in Mexico and Colombia. Playtech noted a remarkable 100% growth in Mexico’s average audience compared to the 2022 World Cup, leading to significant new customer acquisitions during the event.
In total, Playtech's B2B revenue climbed 14% year-on-year to €394.8 million, while adjusted EBITDA jumped 75% to €128.1 million. The only region reporting a decline in B2B revenue was the UK, where it fell by 8% to €59 million. Playtech attributed this downturn to "certain customer-specific changes and increased Remote Gaming Duty".
Excluding the UK, Europe witnessed a 2% increase. Notably, regulated revenue accounted for 83% of overall B2B revenue, reflecting a 21% growth compared to unregulated revenue.
In a follow-up analyst call, CEO Mor Weizer expressed confidence in the continued growth of regulated revenue but emphasized that Playtech would also maintain support for markets it believes will eventually become regulated. "Unregulated is not illegal," he stated. Weizer added that the company's investment focus remains on regulated markets, although it might consider withdrawing from specific unregulated markets. Currently, more than 85% of Playtech's revenue comes from regulated sources.
Meanwhile, the company's B2C revenue declined by 22% to €32 million, having been significantly impacted last year by the sale of major operations, including Snaitech and Happy Bet. This B2C segment largely consists of Sun Bingo in the UK, which Playtech has indicated is under review due to the recent UK Remote Gaming Duty increase.
On the investment front, Playtech is channeling resources into high-growth areas such as live casino, with a particular emphasis on the Americas, where the company expects to achieve profitability in the US by the end of this year.
