• Home
  • News
  • Results
  • Playtech forecasts 2023 EBITDA to exceed expectations after Q1 tailwinds
hub88
igamingnext photo
In a trading update published today (24 May), Playtech said it now expects adjusted EBITDA for full-year 2023 to come in ahead of current consensus expectations.

According to the company, the improved performance is forecast following a successful start to the year, as a result of certain tailwinds throughout Q1.

Playtech’s B2B division performed “very well” throughout the first four months of 2023, the business said, as it expanded its presence in Latin American markets.

Its Caliente brand continued to demonstrate strong growth, it added, while building on its “leadership position in Mexico.”

In addition, the London-listed supplier continues to make progress in the US, following March’s pledge to invest $85m in Hard Rock Digital in exchange for a low single-digit percentage minority stake in the firm.

Playtech added that its live casino division had been able to capitalise on the market’s rapid expansion, and delivered “good growth” in the first four months of the year, while its higher margin SaaS business also delivered strong revenue growth, new launches and customer signings during the period.

In the B2C segment, Italian operator Snaitech continued to drive Playtech’s performance.

“Our strategy of focusing on regulated or soon-to-be regulated markets, combined with Snaitech’s impressive performance in Italy, means we remain well-positioned to make further progress and capitalise on the significant growth opportunities ahead.” 

– Playtech CEO Mor Weizer

The resumption of domestic football following the end of the FIFA World Cup, combined with pent-up demand for betting, provided a tailwind for the brand at the start of the year, Playtech said, “with the retail segment in particular seeing very strong growth.”

Snaitech’s online business also witnessed good growth, it added.

Strategic and operational measures put in place are beginning to take effect at German and Austrian-facing B2C brand Happybet, which led to a reduced EBITDA loss in the first four months of this year compared to last year. Happybet was integrated into Snaitech in 2021.

Despite the fact current growth rates are expected to come down later in the year following the Q1 tailwinds, the Playtech board expects an increase in 2023 EBITDA ahead of current expectations.

“I am delighted to report that our strong start to the year has continued, with growth across both the B2B and B2C divisions,” said Playtech CEO Mor Weizer. 

“Our strategy of focusing on regulated or soon-to-be regulated markets, combined with Snaitech’s impressive performance in Italy, means we remain well-positioned to make further progress and capitalise on the significant growth opportunities ahead.” 

In its full-year 2022 financial report, Playtech said it had a medium-term adjusted EBITDA target of between €200m and €250m for its B2B segment, and between €300m and €350m for Snaitech.

In the report, CFO Chris McGinnis also commented that: “The company has been investing for growth in recent years, and as a result, the focus has been on EBITDA within the company. Going forward, I believe we need to balance this and also focus on cash generation.”

Similar posts