30th Sep 2024 11:15
(Alliance News) - Playtech PLC on Monday said it expects full-year adjusted earnings to be slightly ahead of expectations after a strong first half.
The platform, content and services provider to the online gambling industry said pretax profit was EUR93.5 million in the six months to June 30, up 17% from EUR79.6 million a year prior.
Revenue climbed 5.5% to EUR906.8 million EUR859.6 million, while basic earnings per share improved to 3.3 euro cents compared with 1.0 cents.
Earnings before interest, tax, depreciation and amortisation rose 13% to EUR233.6 million from EUR207.3 million driven by strong performance across the business-to-business operation.
Revenue in the B2B unit rose 14% to EUR382.2 million from EUR334.5 million a year before. Playtech said high operating leverage and a focus on cost control meant B2B adjusted Ebitda increased by 38% to EUR112.3 million from EUR81.3 million, with adjusted Ebitda margins up 510 basis points.
The firm highlighted continued strength within the Americas region, with revenue growth of 42% to EUR141.6 million from EUR99.7 million.
"Caliplay remains the key driver of growth, with increasing contributions from Wplay in Colombia, NorthStar in Canada and Parx in the US. Brazil continues to grow very strongly as it moves towards regulating," the company stated.
Revenue within the business-to-consumer division was flat at EUR532.4 million, compared with 532.1 million. Adjusted Ebitda declined by 5.7% to EUR130.7 million from EUR138.6 million.
At the Italian betting firm Snaitech, which is being sold to Paddy Power owner Flutter Entertainment PLC, revenue declined by 1.0% to EUR483.6 million from EUR488.4 million.
Using proceeds from this sale, Playtech intends to return EUR1.70 to EUR1.80 billion to shareholders by way of a special dividend and repay the outstanding amount on the bond due March 2026 of around EUR350 million.
Looking ahead, Playtech reported a "solid" start to the second half and said it was on track to deliver full-year adjusted Ebitda slightly ahead of expectations.
The firm added it was on course to be within its B2B adjusted Ebitda medium-term target range of EUR200 million to EUR250 million in full-year 2024, earlier than anticipated.
Chief Executive Mor Weizer said: "With a clear strategy, a strong balance sheet and a great team behind us, we remain very confident in Playtech's future prospects."
Shares in Playtech were down 1.5% to 748.00 pence each in London on Monday.
By Jeremy Cutler, Alliance News reporter
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