REG - Playtech PLC - Trading Statement

PlaytechAnnouncement

24/05/2023 07:00

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RNS Number : 4105A  Playtech PLC  24 May 2023

Playtech plc

('Playtech' or the 'Company')

Trading update

Continued momentum across B2B and B2C; well-placed for rest of 2023

Playtech plc (LSE: PTEC) is pleased to report on trading for the period from 1
January 2023 to 30 April 2023.

Overview

Playtech has continued to make good progress against its strategic objectives
in 2023 across both the B2B and B2C divisions, supported, in particular, by
continued strong growth from Snaitech and Caliente. Although current growth
rates are expected to moderate somewhat later in the year as a result of
certain tailwinds in Q1, the Board now expects 2023 Adjusted EBITDA to be
slightly ahead of current consensus expectations.

Divisional review

B2B Gambling

Playtech's B2B division performed very well throughout the first four months
of 2023, driven by regulated markets.

The Company extended its market-leading presence in Latin America, with
Caliente continuing to demonstrate strong growth, building on its leadership
position in Mexico.

Strategic progress continues to be made in the US. In early 2023, we signed a
landmark agreement with Hard Rock Digital, accelerating our US strategy. As
part of the agreement, Playtech has also invested $85 million (c.€80
million) in exchange for a low single-digit % minority equity ownership stake.

The strategically important Live Casino business continues to capitalise on
the market's rapid expansion, delivering good growth in the period. Momentum
also continued within the higher margin SaaS business with very strong revenue
growth, further launches and new customer signings.

B2C Gambling

The B2C division continues to perform very well, driven by Snaitech. The
resumption of football after the World Cup combined with pent-up demand
provided a tailwind at the start of the year, with the retail segment in
particular seeing very strong growth. The online business also continued to
see good growth.

The strategic and operational measures put in place within the HAPPYBET
business are beginning to take effect with the EBITDA loss reducing slightly
in the trading period versus the prior year.

Board changes

As previously announced, Ruby Yam will join the Board as an Independent
Non-executive Director on 1 June 2023, while John Krumins has advised the
Board that he will be stepping down after the publication of the Group's
interim results in September 2023.

Outlook

The strong start to 2023 as announced at the FY22 results in March 2023 has
continued, driven by Snaitech and Caliente and consistent with the structural
growth drivers within the industry. Although current growth rates are expected
to moderate somewhat later in the year as a result of certain tailwinds in Q1,
the Board now expects 2023 Adjusted EBITDA to be slightly ahead of current
consensus expectations.

Given the momentum in the business, the Board remains confident in Playtech's
ability to execute on the exciting growth opportunities across both B2B and
B2C divisions over the medium term.

Mor Weizer, CEO, commented: "I am delighted to report that our strong start to
the year has continued, with growth across both the B2B and B2C divisions. 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."

 

- ENDS -

For further information please contact:

 

 Playtech plc                                +44 (0) 20 3805 4822
 Sandeep Gandhi, Head of Investor Relations
 Headland (PR adviser to Playtech)           +44 (0) 20 3805 4822
 Lucy Legh, Jack Gault

 

About Playtech

Founded in 1999 and premium listed on the Main Market of the London Stock
Exchange, Playtech is a technology leader in the gambling industry with over
7,000 employees across 20 countries.

 

Playtech is the gambling industry's leading technology company delivering
business intelligence driven gambling software, services, content and platform
technology across the industry's most popular product verticals, including,
casino, live casino, sports betting, virtual sports, bingo and poker. It is
the pioneer of omni-channel gambling technology through its integrated
platform technology, Playtech ONE. Playtech ONE delivers data driven marketing
expertise, single wallet functionality, CRM and responsible gambling solutions
across one single platform across product verticals and across retail and
online.

 

Playtech partners with and invests in the leading brands in regulated and
newly regulated markets to deliver its data driven gambling technology across
the retail and online value chain. Playtech provides its technology on a B2B
basis to the industry's leading retail and online operators, land-based casino
groups and government sponsored entities such as lotteries. Playtech directly
owns and operates Snaitech, the leading sports betting and gaming company in
online and retail in Italy.

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