Feb18
Playtech Sees 54% Revenue Rise, Expects Further Surge in 2019
February 26, 2019 Andrej Vidovic
One of the software distribution companies that can give themselves a pat on the back for a wildly successful past year is Playtech, which has publicly released a financial report for 2018 and it’s mostly good news… with the B2B segment faltering somewhat.
Last year saw this brand amass revenue that was 54% higher than the year prior and one very specific and, in hindsight, pivotal buy has helped this come through:
That was the acquisition of 70.6% stakes of Snaitech, the Italian operator whose income and balance sheet was included in Playtech’s yearly financial report from the day of the purchase, June 5th. In June, Snaitech was fully acquired and became a Playtech subsidiary.
Success Despite Casino Vertical Failings
Snaitech ed for the gaming firm’s total annual profit of €1.24 billion with their own contribution of €511.9…
…while EBITDA rose 7 percent to €343 million. Revenue’s surprisingly high total was certainly not helped by the company’s under-performing casino vertical which declined 22% to €320.1m.
In general, B2C income grew to a total of €593.2 million which marks an incredible soar of 744% from 2017! Other contributors to this milestone were Sun Bingo with €33.7 million and miscellaneous gaming channels with another €47.6m.
The B2B segment was a story of stark contrast: its revenue dropped 14 percent to €566m, while casino revenue plummeted 22% to €321.1m – chiefly due to poor performance on the Asian market which yielded 41% less in revenue than the year before.
Positive Outlook For 2019
Based on this generally successful, albeit problematic, 12-month period, the gaming industry leader has begun to outline expectations and forecasts for 2019…
…which mostly boil down to one key objective: continued financial surge, boosted by presence in recently entered markets of the UK and certain European and Latin American countries.
Comments Alan Jackson, Playtech chairman:
“This has been an extremely important year in the growth and development of Playtech. The year has produced many challenges for Playtech and the industries we operate in, making our achievements this year all the more critical to our longer-term success.”
He continued: “Playtech has continued to improve its quality of earnings, has delivered strategic progress in fast growing markets, has an improved financial profile and continued to develop its corporate governance through the evolution of the board. This progress lays the foundations for long term, sustainable growth and shareholder value in 2019 and beyond.”
“A Different Beast”
The B2B segment is already showing signs of healing in the first two months of 2019…
…the gaming revenue is up 7 percent and Snaitech continued where it left off with another strong start.
Playtech has high hopes of venturing into the US market, particularly one of its most successful parts – the regulated market of New Jersey, for whose gaming license the company already submitted an application.
Regulus Partners analysts have weighed in on these results, pointing out a very obvious shift away from the Asian market to locally regulated markets and “high-margin” strategic B2C partnerships.
Providing further arguments to their claims…
…Regulus analysts call Playtech a “very different beast” to the company of only two years ago, due to better operational visibility and regulated market exposure; they warn, however, that how much this net growth can be driven by this repositioning is open for a debate.
Source:
“Playtech anticipating fruitful year ahead following 54 per cent growth”, casinobeats.com, February 21, 2019.
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Playtech has revealed its financial figures for 2018, showing a 54% increase in revenue from the year prior owing to well-timed acquisition of Snaitech…