The gaming software provider, Playtech, had a successful year in 2022. Their business-to-business (B2B) division and Snaitech operations experienced significant growth, resulting in a 33% increase in income. They generated €1.60 billion in 2022, compared to €1.21 billion the previous year.
Playtech’s earnings also rose by 28%, reaching €405.6 million. However, their actual profit declined by 94% due to fluctuations in the value of their investments. Despite the lower profit, Playtech’s CEO, Mor Weizer, expressed satisfaction with the results. He attributed the record numbers to the hard work and dedication of the entire company.
Playtechs robust performance was propelled by all its business units, with B2B bolstered by Europe (excluding the UK) and the Americas, while B2C profited from Snaitech’s sustained robust performance in the Italian retail and online marketplaces.
In Playtechs B2B sector, the firm encountered “very strong” expansion in regulated markets, with total revenue rising by 14% to €632.4 million. The company declared adjusted EBITDA of €160.2 million, in comparison to €139.2 million in the same period last year.
The provider remarked that this growth happened against the backdrop of the ongoing conflict in Ukraine, where Playtech employs over 700 individuals, approximately 10% of its total workforce.
“I express gratitude to our Ukrainian colleagues for their courage and commend the efforts of our crisis management team, who have been tirelessly aiding our Ukrainian colleagues and their families,” stated Weizer.
Geographically, revenue in Europe (excluding the UK) surged by 31% on a constant currency basis to €184.6 million, primarily driven by the Netherlands, the company stated, with “substantial contributions from Poland, Spain and Ireland.”
Across the Atlantic, Playtechs Americas B2B business also witnessed robust growth, with revenue reaching €144.7 million, up 27% from 2021.
The Isle of Man-based provider stated that the outcomes were driven by Caliente in Mexico and sustained expansion in the Brazilian marketplace.
Playtech also mentioned that it had made “considerable progress” in implementing its US plan, emphasizing a number of agreements revealed in the past year.
Weizer stated: “From a strategic viewpoint, we have continued to advance, successfully selling Finalto, continuing to simplify our plan, and making significant progress in North America, including the launch of our IMS platform with Parx Casino in Pennsylvania, and signing agreements with key new partners such as Golden Nugget, WynnBet, Resorts and 888.”
He added: “We have initiated the new fiscal year by announcing a landmark agreement with Hard Rock Digital, and despite the uncertainty in the global economic and political environment, we remain confident in the future and our ability to generate value for all stakeholders in a sustainable and responsible manner.”
The organization also reported strong cash flow in 2022, with adjusted operating cash flow reaching €397 million.
Within Playtech’s B2C business, Snaitech’s revenue increased by 54% to €899.8 million from €584.7 million. This reflected the recovery of the business after its retail network was almost entirely closed in the first half of 2021 due to the COVID-19 pandemic.
Cost increases
B2B costs rose by 14% in 2022 to €472.2 million, compared to €415 million in 2021.
Playtech revealed that its research and development expenditures rose by 12% to €87.5 million, general and administrative expenditures grew by 23% to €82.6 million, and sales and marketing expenditures climbed by 16.8% to €16.8 million, leading to an 11% rise in operational expenditures to €285.2 million.
Simultaneously, Playtech disclosed its consumer-facing expenses, classified by subsidiary rather than activity. Snaitech’s expenses also climbed by 61%, from €182.6 million to €254.2 million, again attributed to the company’s resumption of its retail operations in 2022. Sun Bingo’s expenses increased by 15% to €63.3 million, while HappyBet’s expenses went up by 4% to €30.9 million, with income of €20.1 million.
Neil Shah, head of investment research at Edison Group, highlighted: “This robust performance is attributed to strong demand for Playtech’s business-to-business market, particularly in the regulated segment, which expanded 14% year-on-year to €632.4 million in revenue.”
He further stated: “Furthermore, the company’s business-to-consumer segment, including Italian sports betting and gaming company Snaitech, experienced a substantial revenue increase of 48% to €983.1 million.” “Overall, these results demonstrate Playtech’s strong momentum and augur well for the coming year.”
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