Playtech buoyant over start to year and “positive” takeover discussions
Trading update outlined how momentum in the Americas and Italy continued into Q1 2022 as TTB talks continue
Playtech has hailed an “excellent start to 2022” in its Q1 trading update as adjusted EBITDA exceeded €100m (£84.4m), driven by both B2B and B2C offerings.
For comparison, the FTSE 250 supplier’s adjusted EBITDA for the first six months of 2021 amounted to €124.1m. No revenue numbers were released in this latest announcement.
Playtech also pointed to “very strong momentum” in the Americas regarding B2B, with Caliplay – a JV with Caliente in Mexico – a particular highlight, as well as live casino operations.
North American growth was highlighted following the signing of “multiple new customers” in the US and the signing of “several partnerships in Ontario”.
Meanwhile, Snaitech achieved Playtech’s hopes last year of becoming the number one operator in Italy, and the trading update went on to say Snaitech’s growth in H2 2021 continued into 2022 fuelled by its online business, retail recovery and favourable sporting results.
Playtech said in a statement: “The excellent start to the year gives the board great confidence in the prospects for full-year 2022.
As would be expected, the board remains cautious and focused given that we are at an early stage in the year, combined with the uncertain macro backdrop due to the pandemic and the war in Ukraine.
Playtech also stated there had been “positive progress in discussions” with the TTB investor group which has announced possible interest in a takeover of the London-listed provider.
“However, there can be no certainty as to whether an offer for the company will be announced, or the terms on which any offer might be made,” Playtech added.
The supplier acknowledged that capital market conditions are “currently challenging”, yet Caliplay and Playtech “continue to explore a possible transaction which would allow Caliplay to enter the US market on an accelerated basis”.
Meanwhile, the disposal of financial trading division Finalto to Gopher Investments remains on course to complete in the second quarter.
Playtech’s shares were up more than 4% to 537p in early trading.