Playtech, a prominent technology group in the gambling industry, has announced strong financial outcomes in the first half of this year. This positive performance was driven by substantial growth in its B2B segment and the exceptional performance of Snaitech, resulting in significant revenue gains.
In their trading update regarding the first six months of 2023, ending on June 30, 2023, Playtech reported a yearly revenue increase of 8%, totalling €859.6 million. The B2B division, which includes entities like Snaitech, Sun Bingo, and HAPPYBET, generated €334.5 million in revenues for H1, marking a 7% increase compared to the previous year.
Playtech’s H1 Revenue Breakdown by Region
Playtech’s Americas operations saw remarkable growth, especially in Caliente, contributing to a notable 43% rise in revenue for the region, reaching €99.7 million. The group also expanded its footprint in the United States by partnering with various operators in different states in the country.
In Europe (without the UK), revenue increased by 5% to €96.6 million and positive growth was observed in countries like Spain and Poland. On the other hand, revenue from the Netherlands decreased due to heightened competition and regulation issues.
Playtech’s revenues declined 2% in the UK to €62.9 million. In the B2C segment, Snaitech’s online business exceeded expectations, achieving a remarkable growth of revenue of +10% compared to 2022, thanks both to online and retail segments. Betting retail sales surged by 24%, primarily due to increased demand following the 2022 World Cup in Qatar.
Profit Decreased Despite the Record Revenue
Despite these record revenues, Playtech’s reported profit from continuing operations before tax decreased from €103.7 million to €79.6 million. Furthermore, post-tax profit experienced a significant drop by 96%. from €71.4 million recorded in H1 2022 to €3.1 million, primarily due to the company’s aggressive investments and expansion, including the €79.8 million investment in Hard Rock Digital.
Playtech’s US-based expansion during this period involved key partnerships, as well as market launches in multiple states, and collaboration with renowned operators like 888, PokerStars, and Rush Street Interactive. This strategic expansion positions Playtech as a significant player in the evolving US gambling market.