Playtech management has reiterated its full year adjusted EBITDA guidance, as the €850m acquisition of Italian-focused Snaitech had a significant impact on the organisation’s performance in the first half of the year.
Reporting revenue for the period of €736.1m, a 69 per cent increase from €436.5m, Snaitech is lauded as “the group’s standout performer” alongside growth in its core B2B regulated gambling segment.
An eight per cent growth offset a 29 per cent drop-off in unregulated B2B gambling revenue, driven by a 36 per cent decline in Asia which has seen the firm scale back full year expectations from €150m at the start of the year to €115m.
Alan Jackson, chairman of Playtech, commented: “Playtech’s combination of scale and leadership in technology continues to deliver growth and strategic progress in our core gambling businesses. In H1 this continued progress has driven group regulated revenue to a new high of 87% (H1 2018: 69%).
“In our B2B business double digit growth in regulated markets outside of the UK has been accompanied by landmark new licensee wins in key regulated markets, laying the foundations for future growth. In our B2C business Snaitech continues to go from strength to strength demonstrating impressive growth momentum in a key market.”
Maintain a core strategic priority of securing new commercial contracts, with its B2B division adding ten new brands as customers during the trading period, Playtech highlights further strengthen via the expansion of key technology contracts with GVC Holdings.
The financial performance also sees the company post a 31 per cent increase in adjusted EBITDA to €190m (2018: €145m), as it reaffirms a 2019 earnings guidance range of €390m-415m.
Furthermore, the firm also reported a net-profit of €71m, down 15 per cent year-on-year from €83m, which it attributes to higher regulated market taxes and costs attached to its Snaitech acquisition.
Providing an update on Playtech’s outlook regarding regulated and future markets, Jackson explained: “We continued to make strong progress in regulated with regulated revenue increasing to 87% (H1 2018: 69%) of total gambling revenue.
“The increase in regulated revenue is a result of the continued progress Playtech has made on its strategic goals as well as the sustained success of Snaitech. Likewise, expanding our relationship with GVC has given Playtech access to additional global markets.
“Playtech continues to actively promote regulation in existing, future and emerging markets. Regulated markets in Europe, Latin America and the US remain key to our continued growth.
“The company is focused on raising industry standards and enabling a fairer, safer and more sustainable sector, where Playtech’s regulation-focused capabilities hold an advantage.
“The company intends to increase its scale and distribution in these markets by signing new licensees, expanding its relationship with existing licensees into further regulated markets and leveraging its broad range of products and services.”