Playtech H1 profits rise amid strong online growth
Gambling software developer Playtech reported a rise in first-half profit on Thursday as it said a strong online performance helped to offset longer-than-expected retail closures in Italy.
In the six months to 30 June, adjusted pre-tax profit from continuing operations was up 246% to €27m, while reported pre-tax profit came in at €278.1m versus a loss of €19.2m in the same period a year ago. Revenues dipped 4% to €457.4m.
Playtech hailed a very strong performance from B2B online, particularly Caliente, as well as Snaitech's online business. It also said that Americas is now its biggest growth driver, with revenue up 106% at constant currency versus the first half of last year.
As far as current trading is concerned, the company said it had seen a strong start to the second half in July and August, with B2B and B2C online businesses expected to continue to deliver solid performances.
Chief executive Mor Weizer said: "Significant progress in the US saw Playtech launch for the first time in Michigan, the first step in our long-term multi-state partnership with Parx Casino, and regulatory approvals progressed in key strategic states. Structured agreements continue to deliver in Latin America, with strong growth in H1 in Mexico and Colombia and launches in Panama and Costa Rica. In Europe, we signed a major new software and services agreement with Holland Casino and saw continued growth across a number of existing licensees.
"Snaitech continued to outperform in Italy, cementing its position as the number one retail and online sports betting brand in Italy. The pandemic has structurally grown the higher margin online business and we expect this growth to continue.”
"Looking forward, given the strong H1 performance, the momentum in the business and the easing of lockdown restrictions, we are confident of Playtech's prospects for the remainder of 2021 and beyond."