Playtech reports 16% H1 EBITDA drop-off during “resilient” reporting period

Playtech has recorded adjusted EBITDA of more than €160m in H1 2020 as its multi-faceted business approach resulted in a “resilient” reporting period.

The London-listed supplier saw EBITDA fall 16% from H1 2019 (€190.6m) as Covid-19 retail closures across the world financially impacted the group.

Playtech noted its Italian B2C arm Snaitech lost significant revenue in H1 due to retail closures and the cancellation or postponement of sporting events, while its operations in Asia were also severely impacted by localised government lockdowns.

However, the group’s core B2B casino offering performed well due to heightened levels of interest in online gaming during the peak of the pandemic, with activity remaining above pre-Covid-19 levels despite easing of lockdown restrictions.

Elsewhere, Playtech’s financial subsidiary TradeTech recorded “exceptional performance” during the first six months of the year, according to the firm, which helped mitigate some of the other financial difficulties.

The firm also confirmed that as of 30 June, it had more than €600m available in liquidity.

Mor Weizer, Playtech CEO, said his company had shown “outstanding operational resilience” during the coronavirus pandemic.

Weizer said: “In addition to navigating near-term headwinds, we’ve continued to focus on setting up the business for success in the long-term. During the period, we’ve worked hard to add new brands, expand relationships with our existing customers and entered the New Jersey market with our long-standing strategic partner bet365.

“It is pleasing to see the impacted parts of the business starting to demonstrate positive momentum and I am confident the actions we have taken will help us emerge stronger and cement our market-leading position,” he added.

Playtech will announce its full H1 2020 results on 17 September. Its share price increased by more than 3% in early trading.