Playtech enhances earnings forecast and allocates significant returns to shareholders.
- A robust performance in company’s B2B operations boosts earnings predictions.
- The sale of Snaitech to Flutter is set to return €1.7bn to investors.
- Playtech’s six-month revenue hits €906.8m, with a notable post-tax profit increase.
- CEO Mor Weizer highlights expansion in North America and future opportunities.
Playtech, a leader in gambling software, has increased its earnings outlook, attributing this to significant progress in its business-to-business (B2B) segment. The firm announced a major disbursement of €1.7 billion to shareholders, arising from the sale of its Italian division, Snaitech, to Flutter. This strategic move underscores Playtech’s commitment to enhancing shareholder value and strengthening its financial portfolio.
In the first half of the year, Playtech recorded an 11% rise in adjusted EBITDA, reaching €243 million, driven by strong B2B performance. The revenue also saw a commendable 5% rise, progressing to €906.8 million, while post-tax profit grew by an impressive 23% to €105.4 million. A notable increase was also seen in diluted earnings per share, which soared 22% to 33.6 cents. These figures reflect the company’s adept management of operating leverage and cost efficiencies.
CEO Mor Weizer expressed confidence in Playtech’s strategic direction, highlighting the expansion efforts in the United States and Canada, which have already shown positive outcomes with revenues tripling in the period. He emphasized Playtech’s robust strategy and efficient team as pillars of future growth prospects.
The divestment of Snaitech marks a pivotal point for Playtech. The deal concluded with Flutter for €2.3 billion, is expected to finalize by mid-2025, and includes a €350 million bond repayment alongside significant returns to shareholders. Despite a minor dip in Snaitech’s revenues by 1% to €483.6 million, the sale represents a strategic repositioning to explore further opportunities across Playtech’s remaining business sectors.
Mor Weizer acknowledged Snaitech’s role in Playtech’s trajectory and conveyed optimism for the company’s ongoing ventures, stating that the future holds promising opportunities. By capitalizing on its strategic assets and market positions, Playtech continues to remain well-poised to harness growth while maintaining operational excellence.
Playtech’s strategic initiatives and financial management position it well for sustained future success.
