Playtech confident despite recent betting challenges

22nd May 2024 08:44

(Sharecast News) - Playtech reported a solid start to the year across its divisions in an update on Wednesday, despite some challenges around sports results.

The FTSE 250 gambling software developer, which was holding its annual general meeting, said that during the first four months of 2024 it saw strong underlying trends, partly offset by customer-friendly sporting results, which impacted overall performance.

In the B2B division, Playtech said it achieved significant revenue growth in regulated markets, driven by tighter cost control measures.

The Americas, including the US and Canada, showed increasing contributions, albeit from a smaller base.

Mexico and Colombia also performed well.

The live segment capitalised on market expansion, delivering solid growth, while the casino segment continued to show strength.

Playtech's higher-margin, less capital-intensive software-as-a-service business maintained momentum with robust revenue growth, new launches, and customer signings.

The B2C division meanwhile saw strong underlying performance from Snaitech, with wagers increasing across both online and retail betting segments.

That growth was notable despite tough comparisons to 2023, which benefited from pent-up demand following the FIFA World Cup.

In Italy, strong betting volumes were partly offset by customer-friendly sporting outcomes, although Playtech said it remained well-positioned to capitalise on the structural shift towards higher-margin online business in Italy.

Regarding Caliplay, Playtech highlighted the ongoing importance of the customer and said it maintained an open dialogue to resolve outstanding fee collections.

Although Playtech believed it had visibility over most of Caliplay's revenue, full financial information was not available during the period.

As a result, revenue from additional B2B services was partly estimated based on prior trends and provided information.

On the governance front, Playtech said Doreen Tan was set to join the board as an independent non-executive director on 9 July.

It said Tan would bring more than 30 years of experience from leading financial institutions, enhancing its expertise and strategic oversight.

"Given the strategic progress being made across the business, the board remains confident in Playtech's ability to execute on the exciting growth opportunities across both B2B and B2C divisions over the medium term," the company's board said in its statement.

At 0819 BST, shares in Playtech were down 0.38% at 487.14p.

Reporting by Josh White for Sharecast.com.