London-listed Playtech plc (LSE: PTEC) has updated its trading for the first four months of 2024, reporting strong trading performance driven by “strong fundamental trends”.
However, the company did not provide any specific numbers in the summary report published on Wednesday morning.
Playtech's B2B division is performing well
Playtech's B2B division showed notable growth during the first four months of 2024. The division's success can be attributed to revenue jumps in regulated markets and the benefits of stricter cost control measures. The Americas, especially the United States and Canada, increased their contribution to the division's growth, while Mexico and Colombia continued to perform well.
“Live continues to benefit from rapid market expansion, delivering strong growth during this period, while Casino also shows strength,” the company commented in a trading update. “Our higher margin and less capital-intensive SaaS businesses demonstrated continued momentum with strong revenue growth, further launches and new customer signings.”
Looking to the future, Playtech's Board of Directors is optimistic about the company's ability to capitalize on future growth opportunities in both the B2B and B2C sectors in the medium term due to the strategic changes taking place across the organization.
#BTK PLAYTECH TRADING UPDATE – B2B performance was good, driven by revenue growth and tighter cost control. Fees owed by Caliplay Customer remain uncollected and full financial information cannot be obtained
-Dude (@Redpanda73) May 22, 2024
B2C also delivers strong fundamental performance
Snaitech, Playtech's B2C division, performed well on an fundamental basis, with betting showing strength across the online and retail betting segments.
“As well noted by industry peers, strong volumes were partially offset by customer-friendly sporting results in Italy,” the trading update added. “Despite this, we remain well positioned to continue to benefit from the structural shift towards higher margin online businesses in Italy.”
The B2C division contributed significantly to Playtech's revenue growth to €1.7 billion in 2023, representing a 7% increase compared to 2022.
Update on Caliplay and panel changes
Caliplay, an important client of Playtech, is performing strongly despite the fact that Playtech has yet to receive the fees owed to the company. Both companies are actively engaged in discussions to find a mutually beneficial solution and strengthen their partnership.
Although Playtech is confident that it has a comprehensive understanding of most of Caliplay's revenue streams, obtaining full financial data from Caliplay proved challenging during the reporting period. Consequently, Playtech was forced to rely on revenue estimates generated from complementary B2B services described in their agreement. These estimates are based on historical trends and limited information provided by Caliplay.
In addition, Doreen Tan is scheduled to join the Board as an independent non-executive director on 9 July 2024. With a career spanning more than 30 years at some of the world's leading financial institutions, Tan brings a wealth of experience to the table.
London-listed Playtech plc (LSE: PTEC) has updated its trading for the first four months of 2024, reporting strong trading performance driven by “strong fundamental trends”.
However, the company did not provide any specific numbers in the summary report published on Wednesday morning.
Playtech's B2B division is performing well
Playtech's B2B division showed notable growth during the first four months of 2024. The division's success can be attributed to revenue jumps in regulated markets and the benefits of stricter cost control measures. The Americas, especially the United States and Canada, increased their contribution to the division's growth, while Mexico and Colombia continued to perform well.
“Live continues to benefit from rapid market expansion, delivering strong growth during this period, while Casino also shows strength,” the company commented in a trading update. “Our higher margin and less capital-intensive SaaS businesses demonstrated continued momentum with strong revenue growth, further launches and new customer signings.”
Looking to the future, Playtech's Board of Directors is optimistic about the company's ability to capitalize on future growth opportunities in both the B2B and B2C sectors in the medium term due to the strategic changes taking place across the organization.
#BTK PLAYTECH TRADING UPDATE – B2B performance was good, driven by revenue growth and tighter cost control. Fees owed by Caliplay Customer remain uncollected and full financial information cannot be obtained
-Dude (@Redpanda73) May 22, 2024
B2C also delivers strong fundamental performance
Snaitech, Playtech's B2C division, performed well on an fundamental basis, with betting showing strength across the online and retail betting segments.
“As well noted by industry peers, strong volumes were partially offset by customer-friendly sporting results in Italy,” the trading update added. “Despite this, we remain well positioned to continue to benefit from the structural shift towards higher margin online businesses in Italy.”
The B2C division contributed significantly to Playtech's revenue growth to €1.7 billion in 2023, representing a 7% increase compared to 2022.
Update on Caliplay and panel changes
Caliplay, an important client of Playtech, is performing strongly despite the fact that Playtech has yet to receive the fees owed to the company. Both companies are actively engaged in discussions to find a mutually beneficial solution and strengthen their partnership.
Although Playtech is confident that it has a comprehensive understanding of most of Caliplay's revenue streams, obtaining full financial data from Caliplay proved challenging during the reporting period. Consequently, Playtech was forced to rely on revenue estimates generated from complementary B2B services described in their agreement. These estimates are based on historical trends and limited information provided by Caliplay.
In addition, Doreen Tan is scheduled to join the Board as an independent non-executive director on 9 July 2024. With a career spanning more than 30 years at some of the world's leading financial institutions, Tan brings a wealth of experience to the table.