Playtech unveiled its comprehensive financial summary for the entirety of 2022, showcasing a substantial 33% surge in earnings, fueled by robust expansion within its B2B branch and Snaitech operations. Income climbed from €1.21 billion in the preceding year to €1.6 billion.
Playtech’s Annual Report: Robust B2B Operations Propel 33% Revenue Increase
Building upon this revenue surge, Playtech reported a further 28% escalation in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), rising from €317.1 million in the previous year to €405.6 million in 2022. While the firm declared an adjusted net profit of €160.5 million, a 26% increase from the €127.6 million reported last year, its actual profit dipped by 94% from €686.7 million to €40.6 million.
The provider attributed this primarily to a reduction in unrealized gains on derivative financial assets in 2022 compared to the preceding year. This €583.2 million decline in asset value accounted for the bulk of the profit reduction.
Despite this, the company celebrated its remarkable performance, with CEO Mor Weizer (pictured) crediting the collective effort of all business units.
“2022 was a highly successful year for Playtech, marked by record revenue and EBITDA, surpassing market expectations,” he stated.
Playtechs diverse business divisions all contributed to its achievements, with B2B driven by Europe (excluding the United Kingdom) and the Americas, while robust performance in B2C was fueled by Snaitech’s sustained strong performance in the Italian retail and online marketplaces.
Throughout the year, Playtechs B2B division experienced “very robust” growth in regulated markets, with total revenue rising by 14% to €632.4 million. The company reported adjusted EBITDA of €160.2 million, compared to €139.2 million in the corresponding period the previous year.
The provider noted that this growth occurred amidst the ongoing conflict in Ukraine, where Playtech employs over 700 individuals, representing approximately 10% of the company’s total workforce.
“I acknowledge the contributions of our colleagues in Ukraine and commend our crisis management team for their tireless efforts in supporting our Ukrainian colleagues and their families,” stated Weizer.
Geographically, revenue in Europe (excluding the United Kingdom) expanded by 31% at constant currency rates to €184.6 million, which the company stated was primarily driven by the Netherlands, “with substantial contributions from Poland, Spain and Ireland.”
Across the Atlantic, Playtechs Americas B2B business also witnessed robust growth, with revenue reaching €144.7 million, up 27% from 2021.
The Isle of Man-based provider asserts that the outcomes are attributable to the sustained expansion of Caliente in Mexico and the Brazilian marketplace.
Playtech also declared that it has achieved “substantial progress” in its US strategy, emphasizing several agreements publicized last year.
“From a tactical viewpoint, we have been making headway, successfully divesting Finalto, consistently streamlining our strategy, and making considerable progress in North America, including the launch of the IMS platform in collaboration with Parx Casino in Pennsylvania, as well as new accords with prominent entities such as Golden Nugget, WynnBet, Resorts and 888,” stated Weizer.
“We have commenced the new year by publicizing a groundbreaking agreement with Hard Rock Digital, and notwithstanding the ongoing macroeconomic and political instability, we remain optimistic about the future and our capacity to generate value for all stakeholders in a sustainable and accountable manner,” he appended.
The organization also reported robust cash flow in 2022, with adjusted operating cash flow of €397 million.
Concerning Playtech’s B2C business, Snaitech’s revenue surged by 54% to €899.8 million from €584.7 million. This mirrors the recovery of the business after the company closed its retail network in the initial half of 2021 due to the COVID-19 pandemic.
Cost Augmentations
B2B costs escalated by 14% in 2022 to €472.2 million, in comparison to €415 million in 2021.
The firm unveiled a document revealing that its research and development expenditures climbed by 12% to €87.5 million in the preceding fiscal period, while general and administrative expenditures rose by 23% to €82.6 million. Playtech’s sales and marketing expenses climbed by 16.8% to €16.8 million, and most importantly, its operational costs rose by 11% to €285.2 million.
Meanwhile, Playtech reports its consumer-facing expenses by subsidiary, not by business activity. Snaitech’s costs also climbed by 61% from €182.6 million to €254.2 million, again fueled by the company’s reopened retail operations in 2022. Its Sun Bingo costs rose by 15% to €63.3 million, while HappyBet costs climbed by 4% to €30.9 million on revenue of €20.1 million.
“This robust performance is attributed to strong demand for Playtech’s business-to-business market, particularly in the regulated space, which expanded 14% year-over-year to €632.4 million,” stated Neil Shah, director at investment research firm Edison Group.
“Furthermore, the company’s business-to-consumer operations, including Italian sports betting and gaming company Snaitech, saw a significant revenue increase of 48% to a total of €983.1 million,” he stated. “Overall, these outcomes demonstrate that Playtech is flourishing and mark a positive start to the year.”
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