- First half revenues up 71%, EBITDA up 60%
- Strength continued into second half
- Shares fall 5%
Gambling software company Playtech (PTEC) delivered strong first half growth with revenues 71% ahead year-on-year to €792.3 while adjusted operating earnings were 60% higher at €203.8 million, better than prior expectations.
The company said the ‘excellent’ first half through June had continued into the third quarter, and despite the risk of disruption from the war in Ukraine and an uncertain macroeconomic outlook it remained confident in its prospects.
Chief executive Mor Weizer commented: ‘I am delighted with the positive start the group has made in the first half of 2022, delivering a financial performance ahead of our expectations with significant strategic and operational progress made against our objectives.’
SNAITECH STRENGTH
The consumer facing businesses (Snaitech), which represent around 60% of overall sales, saw ‘significant’ growth with sales rising 182% in the half driven by a reopening of retail sites in Italy while the online segment remained stable.
Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) jumped 154% to €131.7 million. Snaitech maintained its number one slot by brand across retail and online sports betting in Italy.
Snaitech’s retail betting licenses were extended for two years to 2024. The strong momentum in the business prompted an increase in medium term EBITDA guidance for Snaitech of between €300 million and €350 million.
Business-to business revenues grew 13% in constant currencies to €312 million driven by the Americas where sales were 37% higher and Europe excluding the UK which increased sales by 39%.
Adjusted EBITDA was 7% higher at €77.2 million.
The company said it had made significant strategic progress in the US with several new deals signed including Golden Nugget, WynnBET, Resorts and 888 which are expected to go live in coming months.
Playtech continued to diversify with over 50 brands added in the half bringing the total to over 300.
UNLOVED
Despite delivering a strong half and outperforming expectations the shares dropped 5% to 449.8p taking the loss to date to 38%. The contrast of the share price performance with the momentum in the business is stark.
Since the start of the year analysts’ 2022 earnings forecasts have jumped around 40% which means the PE (price-to-earnings) ratio has dropped to 13.6 from 26.4 a year ago.
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