Playtech PLC on Thursday reported a significant decrease in profit, but said results were ‘ahead of expectations’ due to large revenue growth.

The Isle of Man-based gambling software developer said pretax profit had dropped 63% to €103.7 million in the six months to June 30 from €278.1 million a year before.

This fall was mainly due to the €299.9 million of unrealised fair value gains on financial assets recognised in the prior period, with the current period fair value changes being only €48.5 million.

Playtech also published adjusted figures, which showed pretax profit multiplying to £122.3 million from £27.0 million. The adjusted figures relate to one-off items, material reorganisation and acquisitions. The board says ‘the adjusted results represent more closely the consistent trading performance of the business’.

Playtech’s revenue increased by 73% to €792.3 million from €457.4 million. This increase was driven by strong growth within regulated business-to-business markets and Snaitech, Playtech’s Italian business.

Growth in regulated markets delivered B2B revenue of €312.0 million in the first half of the year, up 17% on last year. There was particularly strong growth in the Americas, where revenue increased 50% on last year, and in Europe, where it grew 39%.

Adjusted earnings before interest, tax, depreciation and amortisation in Snaitech more than doubled to €131.7 million from €51.8 million. Snaitech’s online business was ‘ahead of expectations’ with a revenue decline of 5% against last year, despite the reopening of retail sites.

Playtech cautioned that the macroeconomic outlook remains uncertain but said the ‘excellent performance’ from the first half has continued into the second.

Chief Executive Officer Mor Weizer said: ‘I am delighted with the positive start that the group has made in the first half of 2022, delivering a financial performance ahead of our expectations with significant strategic and operational progress made against our objectives.

‘The macroeconomic outlook remains uncertain given geopolitical tensions and inflationary pressures, however we have seen our excellent performance in H1 continue into H2 and expect to see continued strong results from both our B2B and B2C businesses. As such, we are confident about Playtech’s prospects for the remainder of 2022 and beyond.’

Playtech declared no interim dividend. It hasn’t paid a dividend since the interim dividend in 2019.

Shares in Playtech were trading down 3.2% at 459.04 pence each in London on Thursday morning.

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