Playtech announces stellar H1 revenue figures but profits tumble following Hard Rock investment

Article by : Charles Perrin Sep 11, 2023

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Playtech has published its H1 report for 2023, announcing that it made a staggering € 859.6 million in revenue.

The gambling software giant revealed that revenue figures hit a five-year high, representing an 8% increase on the €792.3m it made in H1 last year.

Meanwhile, adjusted EBITDA (Earnings before interest, taxes, depreciation, and amortization) rose by an astonishing 10% compared to H1 in 2022.

Much of Playtech’s growth this year has been driven by its success across the US and Latin America, and they have a proven track record for delivering high-quality and innovative slots for casino players.

Within this, Playtech’s B2C operation, which includes Snaitech, HAPPYBET and Sun Bingo, saw revenues soar by 9% to €532.1m, while the B2B arm shot up by 7% to €334.5m.

Net debt for H1 2023 also decreased by 50% to €248.2m, which is down significantly on the recorded net debt for 2021, which stood at €677.9m.

At the time of writing, Playtech’s share price sits at £5.35, giving it an overall market valuation of £1.65billion.

Perhaps a note of caution should be added, though, at least in terms of the profit perspective, as Playtech’s profits tumbled by 96%.

However, this was mainly due to an investment in Hard Rock Digital earlier this year, where Playtech purchased a minority equity ownership.

Nevertheless, Playtech Mor Weizer seems unduly by the profit figure, and he was keen to stress the hard work that the company has carried out this year.

He said: “Our success in the period was driven by our diversified portfolio, spanning B2B and B2C in some of the fastest-growing regulated markets worldwide.

“Having laid the groundwork in the US, we are growing our offering across multiple states and are confident in our prospects following the landmark agreement with Hard Rock Digital.”

Indeed, Playtech has made huge strides across the US in 2023, entering new states and striking several landmark deals with big players in the gambling industry, including 888 and Rush Street.

On the European front, Playtech has been making all the right noises, with revenues growing by 5% to €96.6m, and this was seen across several countries, including Poland and Spain.

Although UK revenue figures slipped by 2% to €62.9m, Playtech appears to have robust financial health.