Playtech reported on Sept. 30 that expansions of partnerships and new launches in multiple states helped triple its revenue across the U.S. and Canada year over year.
In its H1 2024 release, the gaming tech provider detailed that total revenues in the U.S. and Canada were up 200% from H1 2023.
B2B revenue across the two countries was up over 230% year-on-year in H1. CEO Mor Weizer noted that while this only makes up a small portion of B2B revenue, the company is well-positioned to take advantage of a “huge opportunity” for more growth.
In the first six months of 2024, Playtech launched in all of Michigan, New Jersey and Pennsylvania with DraftKings, Golden Nugget Online Gaming and Rush Street Interactive’s BetRivers brand. It also went live with PENN Entertainment in both Michigan and Pennsylvania and added BetMGM and bet365 to its slate of partners in Pennsylvania.
In addition, it migrated Ocean Casino Resorts onto its platform in New Jersey.
Live revenue from regulated markets across the U.S. and Canada grew by 17%, thanks in part to a new strategic partnership with MGM Resorts to produce content directly from the gaming floor of its two Las Vegas Stripcasinos.
The 200% revenue uptick in the U.S. and Canada far outstripped the 42% rise across the whole Americas region and the 5.5% increase across all markets.
Playtech values Hard Rock as key partner
Playtech also reported that the fair value of Playtech’s low single-digit stake in Hard Rock Digital increased 54% to $132.1 million after the relaunch of Florida operations.
“We need to acknowledge the fact that they only just launched towards the end of last year, beginning of this year,” Weizer told investors on the Sept. 30 earnings call. “Obviously, in Florida, they hold the prime position, and therefore this is a key core market for them.”
The CEO added that while he does not necessarily expect any movement on iGaming expansion in Florida, “I do believe that when it happens, we secured the best partner for iGaming in Florida by definition, and therefore this is a massive opportunity for us.”
Weizer also noted that while Hard Rock and Playtech are investing in the Sunshine State, the operator is also establishing itself in other states, including New Jersey. “Over time, we believe that they have all the characteristics to become a very significant contributor to Playtech from a B2B perspective,” added the CEO.
In addition, Weizer and chief financial officer Chris McGinnis said that Playtech’s settled Caliplay deal will not only fuel growth in Latin America, but could also be extended beyond Mexico into “potentially even the US.”
“I think it accomplishes some of the goals they wanted in terms of giving them a structure to allow them to enter the U.S. and other markets,” said McGinnis. “Whether they and their other shareholders, including us, think a U.S. listing makes sense in the future, that’s to be determined. I don’t think it’s a goal necessarily in and of itself.”
Playtech noted that accelerating its U.S. presence remains a key strategic priority and executives vowed that in H2, it will strengthen its Americas drive, with particular gains expected in its Live Casino unit thanks to the MGM Resorts deal to deliver exclusive live casino content.
As well as executing on its new operator deals, Playtech will focus particularly on meeting the rising U.S. demand for its products. Part of that will include a significant investment in areas such as hiring staff as it continues to “quite aggressively” expand all three of its live dealer studios.
McGinnis noted on the earnings call that Playtech’s U.S. operations will continue to be “a loss-making business” for the foreseeable future due to Playtech’s level of investment in the market. “We’re more excited than ever about the U.S. opportunity, but I wouldn’t say that profitability is imminent,” he told investors. “But I think that’s a good thing, because we’re getting more and more momentum there which requires more investment.”
Driven by the strong growth in the U.S. and Canada, Playtech’s H1 result tracked above guidance. The company expects to reach its B2B Adjusted EBITDA medium-term target range of $223 million to $279 million before the end of the year, earlier than anticipated.
“This set of results is further proof of the excellent progress we’ve made this year,” concluded Weizer.
“We’ve executed our strategy to grow and improve the B2B business, delivering broad-based growth with strong contributions across our key markets, high operating leverage, and tight cost control.
“With a clear strategy, a strong balance sheet, and a great team behind us, we remain very confident in Playtech’s future prospects.”
Don’t forget to subscribe to our Telegram channel!
