- Full year to be ahead of expectations
- On track to deliver medium term ambitions
- Transition back to B2B operation
Playtech (PTEC) was one of the biggest mid-cap gainers on Thursday (11 Sep), with the shares surging as much as 12% to a record high after the gambling technology provider reported better-than-expected first-half trading and said full-year profit will be ahead of market estimates.
The shares have gained around 60% year-to-date reflecting strong momentum in the business and positive trading updates.
BACK TO ITS ROOTS
Following the sale of consumer business Snaitech to Flutter Entertainment (FLTR) on 30 April for €2.3 billion and returning approximately €1.8 billion of the proceeds to shareholders, Playtech is making a transition back to being a predominately B2B (business-to-business) operation.
First-half revenue to 30 June fell 10% to €387 million and adjusted EBITDA (earnings before interest, tax, depreciation and amortisation) dropped 16% to €91.6 million, reflecting a revised agreement with partner Caliente Interactive which came into effect on 31 March.
Excluding the impact of revised agreements, first-half B2B revenues grew 3% and adjusted EBITDA was 3% ahead of the prior period. The company saw ‘significant’ progress in the US and Canada with revenues growing 64% versus the first half of 2024.
RAISED OUTLOOK
Playtech said the business had made a ‘solid’ start to the second half and was on track to deliver full-year adjusted EBITDA ahead forecasts which sit at €171 million according to Jefferies.
Jefferies anticipates a 5% to 7% increase in full-year consensus forecasts despite increased investments in the US and Canada and headwinds in Columbia and Brazil.
The company said given the exciting growth opportunities ahead the board remains very confident in achieving its medium-term targets. These include delivering adjusted EBITDA of between €250 million to €300 million and free cash flow in the range of €70 million to €100 million.
‘We continue to see significant growth opportunities in the market for Playtech, and I am confident that the combination of our market-leading technology and talented people puts us in a strong position to deliver on this exciting potential,’ enthused CEO Mor Weizer.
