23rd Sep 2021 09:41
(Alliance News) - Playtech PLC on Thursday said it performed in-line with expectations in the first half of the year, as higher profit on Latin American options offset lower revenue.
The online gaming and sports betting firm posted a EUR278.1 million pretax profit for the six months ended June 30, sharply up from the EUR19.2 million reported the previous year.
Adjusted pretax profit jumped to EUR27.0 million from EUR7.8 million.
Playtech reported pretax profit of EUR36.0 million and adjusted pretax profit of EUR96.1 million in the first half of 2019, before the pandemic.
Revenue fell 4.0% to EUR457.4 million in the first half from EUR476.7 million last year. Both years were substantially below the EUR727.8 million in revenue reported in the first half of 2019.
Lower interim revenue was offset by unrealised gains of EUR299.9 million on the company's options embedded in Latin America agreements with Caliente, Wplay and others. No fair value adjustments were reported at the same point in 2020.
Playtech said it performed in line with expectations in the first half as easing lockdown measures boosted activity at betting shops.
Lingering retail closures in Italy were counteracted by a "very strong" online performance, the company added. Online income drove B2B revenue growth of 16% year-on-year to EUR267.2 million from EUR229.7 million.
Playtech noted particularly good performances from its Caliente business in Mexico and its Milan-based gaming and betting concessionary Snaitech.
The Italian betting concession saw its online revenue rise 95% to EUR123.4 million, the company said. Meanwhile, Snaitech's adjusted earnings before interest, tax, depreciation and amortisation reached EUR51.6 million in the first half, up 9.6% from EUR47.1 million a year ago.
Expansion has continued in the US and Latin America, Playtech noted, as interim revenue from the Americas more than doubled to EUR46.4 million from EUR22.9 million.
The company said it has continued to develop its business across the US, Latin America and Europe through the first half.
"Significant progress in the US saw Playtech launch for the first time in Michigan, the first step in our long-term multi-state partnership with Parx Casino, and regulatory approvals progressed in key strategic states. Structured agreements continue to deliver in Latin America, with strong growth in the first half in Mexico and Colombia and launches in Panama and Costa Rica. In Europe, we signed a major new software and services agreement with Holland Casino and saw continued growth across a number of existing licensees," noted Chief Executive Mor Weizer.
The company declared no interim dividend, in keeping with the previous year. Payouts have been suspended since February 2020 due to uncertainty surrounding the virus pandemic.
Looking ahead, Playtech said it made a strong start to the second half.
Due to the strong interim performance, combined with the easing of lockdown restrictions, Playtech said it was confident in its prospects for the remainder of 2021 and beyond.
Shares in Playtech were trading up 0.6% at 449.75 pence each in London on Thursday morning.
By Scarlett Butler; [email protected]
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