Playtech Beats 2024 Earnings Expectations Driven By B2B Success
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Playtech plc has shared that it expects its adjusted EBITDA for 2024 to exceed what people are currently predicting. This is thanks to strong results in its B2B division in the first six months of the year. The company has also secured a new deal with its partner, Caliplay.
The London-based company recorded good trading from January 1 to June 30, 2024. Growth was steady, as revealed in its May AGM update. Playtech’s B2B part also did well, with more revenue coming from the Americas and better control of costs.
Snaitech, Part Of Playtech’s B2C division, Continued To Grow Its Wagers
In the B2C part, Snaitech continued to grow its wagers, even though results from sports betting in Italy were more in favor of customers. Playtech also said it is still talking to Flutter about selling Snaitech, but no final deal has been made yet.
The company did not provide any specific figures in this latest update. These details will come out on September 30 when the first half of the 2024 report is released. Playtech’s last report was published in March, where it showed that in 2023, adjusted revenue went up by 7%, and earnings increased by 9% to €423.3 million from the preceding year.
Playtech also announced that it has teamed up with Caliplay, a branch of Corporación Caliente. As part of the new deal, Playtech will keep a 30.8% share in Caliente Interactive, Inc., the new U.S. firm for Caliplay. The agreement also includes a new eight-year B2B contract and services deal, plus an extra $140 million payment to Playtech across four years.
The Chief Executive Officer of Playtech, Mor Weizer, gave his opinion about the partnership. He stated that for the past nine years, the firm has worked hand in hand with Caliplay to build a fast-growing and successful online business in Mexico.
The Deal Will Boost Cali Interactive’s Growth
Weizer further noted that the new agreement starts an exciting new phase that will continue the remarkable progress the team has achieved so far. He added that the new deal will also speed up the growth of Cali Interactive.
Playtech noted that Caliplay has started paying its software and services dues again, and more than €150 million in old unpaid fees has now been collected. The company also shared that Caliplay did very well in the first six months of 2024.
Playtech is a betting software development firm established in 1999. It offers software services for mobile games, arcade games with fixed odds, live dealer games, scratch games, online sports betting, online bingo games online poker rooms, and online casinos. The company is registered on the London Stock Exchange (LSE) and is part of the FTSE 250 Index.
