Playtech unveiled its yearly report for 2022, showcasing robust expansion in its business-to-business division and Snaitech operations, propelling income by 33% to €1.6 billion from €1.21 billion the preceding year.
Playtech’s complete yearly outcomes: Robust business-to-business execution propels 33% income growth
Riding on this income surge, Playtech reported a further 28% increase in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to €4.056 billion in 2022 from €3.171 billion the preceding year. While the firm reported adjusted after-tax earnings of €1.605 billion, up 26% from €1.276 billion reported last year, the company’s actual profit plummeted by 94% to €40.6 million from €6.867 billion.
The provider stated this was primarily due to the unrealized gains on derivative financial assets in the previous year, which diminished in 2022. This €5.832 billion decline in asset value accounted for the majority of the profit decrease.
Despite this, the company still celebrated the record performance, with CEO Mor Weizer (pictured) crediting it to the combined efforts of all business units.
“2022 was a dynamic period for Playtech, and we accomplished record income and EBITDA, surpassing market expectations,” he stated.
Playtechs diverse business segments contributed to this outcome, with B2B fueled by Europe (excluding the UK) and the Americas, while B2C’s robust performance was attributed to Snaitech’s sustained strong showing in the Italian retail and online marketplaces.
In Playtechs B2B division, the firm witnessed “very strong” expansion in regulated markets, with total income rising by 14% to €632.4 million. The company reported adjusted EBITDA of €160.2 million, compared to €139.2 million in the same period a year ago.
The provider noted that this growth occurred against the backdrop of the ongoing conflict in Ukraine, where Playtech employs over 700 individuals, representing about 10% of its total workforce.
“I want to express my gratitude to our Ukrainian colleagues for their courage and commend our crisis management team for their tireless efforts to support our Ukrainian colleagues and their families,” Weizer stated.
Geographically, revenue in Europe (excluding the UK) increased by 31% to €184.6 million at constant exchange rates, driven primarily by the Netherlands, the company said, “with substantial contributions from Poland, Spain and Ireland.”
Across the Atlantic, Playtechs Americas B2B business also saw robust growth, with income reaching €144.7 million, up 27% from 2021.
The Isle of Man-based provider stated that the outcomes were driven by Caliente in Mexico and ongoing expansion in the Brazilian market.
Playtech also declared that they had made “substantial progress” in implementing their US strategy, highlighting a number of partnerships announced over the past twelve months.
“Strategically, we have also continued to deliver, successfully selling Finalto, continuing our streamlining strategy, and making significant progress in North America, launching the IMS platform with Parx Casino in Pennsylvania and signing several key new agreements including Golden Nugget, WynnBet, Resorts and 888,” stated Weizer.
“We have begun the new fiscal year well, announcing the signing of a major agreement with Hard Rock Digital, and despite ongoing global economic and political uncertainty, we remain optimistic about the future and our ability to generate value for all stakeholders in a sustainable and responsible way,” he added.
The organization also reported robust cash flow in 2022, with adjusted operating cash flow reaching €397 million.
In terms of Playtech’s B2C business, Snaitech revenue increased 54% to €899.8 million from €584.7 million. This reflected the recovery of the business after it was forced to shut down nearly its entire retail network in the first half of 2021 due to the COVID-19 pandemic.
Increasing Costs
B2B costs rose 14% in 2022 to €472.2 million, compared to €415 million in 2021.
Playtech has published a document revealing that its research and development expenditures climbed by 12% to €87.5 million. General and administrative costs rose by 23% to €82.6 million. Sales and marketing expenses climbed by 16.8% to €16.8 million. Operational expenses increased by 11% to €285.2 million.
Playtech also disclosed its B2C expenditures by subsidiary rather than business category. Snaitech’s costs also rose by 61% from €182.6 million to €254.2 million, again driven by the company’s reopened retail operations in 2022. Sun Bingo’s costs increased by 15% to €63.3 million, while HappyBet’s costs climbed by 4% to €30.9 million, with revenue of €20.1 million.
Neil Shah, director of investment research at Edison Group, stated: “This strong performance can be attributed to Playtech’s robust demand in its business-to-business market, especially in the regulated sector, which expanded 14% year-on-year to €632.4 million.”
He added: “Furthermore, the company’s business-to-consumer segment, including Italian sports betting and gaming company Snaitech, witnessed a significant 48% increase in revenue to €983.1 million.” “Overall, these outcomes demonstrate Playtech’s strong performance, suggesting a positive start to the year.”
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