Playtech Plc has achieved its “elevated targets” as part of its 2024 transformation, with the FTSE250 technology group transitioning to a purely B2B model.
For the 2024 trading year, including Snaitech’s B2C operations, Playtech’s corporate revenue reached €1,791.5 million ($1,935.4 million), marking a 5% increase compared to the 2023 financial year’s revenue of €1,706 million ($1,834 million).
Although the €2.4 billion ($2.58 billion) sale of Snaitech to Flutter Entertainment (approved in Q3) disrupted trading flows, Playtech still delivered “outstanding operational results,” achieving an adjusted EBITDA of €480 million ($516 million) for 2024, up from €432 million ($467.7 million) in 2023, surpassing revised market forecasts.
This financial achievement is particularly significant as Playtech accelerates its strategic transformation, focusing solely on its role as a B2B technology provider, divesting Snaitech, and renewing its partnership with Caliplay Mexico, its largest service contract, under new terms.
Mor Weizer, CEO of Playtech, noted: “2024 was a landmark year for Playtech. We successfully reached an agreement to sell Snaitech to Flutter Entertainment, delivering significant value to our shareholders while enabling Playtech to refocus predominantly on its core strengths as a pure-play B2B business.”
“Additionally, we are pleased to have secured a revised strategic agreement with Caliplay, our partner in Mexico, providing greater certainty and a strong foundation for future growth.”
Playtech’s B2B segment outperformed expectations, with revenue increasing by 10% to €754.3 million ($818.5 million) and adjusted EBITDA growing by 22% to €222 million ($240.8 million), while the B2B unit’s operating margin expanded to 29%.
The B2B growth was driven by strong momentum in the Americas, particularly in the U.S. and Canada (+126%), as well as continued success in Latin America. Additional growth factors included strong performance in Live Casino (+24%) and new strategic agreements with DraftKings, Hard Rock Digital, MGM Resorts, and FanDuel.
Playtech has emphasized the strategic significance of expanding its SaaS business, as the segment generated €80 million ($86.8 million) in revenue (+59%), exceeding its mid-term target of €60–80 million ($65.1 million–$86.8 million) and reaching the upper end of the range. This model allows smaller operators to access the platform with minimal barriers, facilitating cross-selling and revenue diversification across multiple brands and regions.
Playtech’s B2C segment generated total revenue of €1,052.7 million ($1,142.1 million) (+2%) and an adjusted EBITDA of €258.4 million ($280.4 million) (+3%), maintaining stable performance ahead of key asset sales.
Italian giant Snaitech reported revenue of €956 million ($1,037.0 million) (+1%) and an EBITDA of €265.7 million ($288.4 million) (+4%), with contributions driven by a 3% increase in online revenue. The €2.4 billion ($2.6038 billion) sale to Flutter Entertainment is expected to be completed in Q2 2025.
Meanwhile, Playtech’s German subsidiary, HAPPYBET, continued to post losses of €11.8 million ($12.8 million), whereas Sun Bingo (UK) increased its revenue by 7% but faced an EBITDA decline due to higher marketing expenses and new affordability testing requirements.
In Q4 2024, Playtech announced that it had begun negotiations to sell its subsidiary HAPPYBET to a German venture capital firm in the coming months.
Playtech’s adjusted post-tax profit increased by 42% to €223.5 million ($242.3 million), driven by strong performance in its core business, particularly in the B2B segment, and the resumption of payments from Caliplay.
In the second half of the year, Playtech resolved its joint venture dispute with Caliplay, agreeing on a new structure and acquiring a 30% stake in Caliente Interactive—a newly established U.S. company that will manage the joint venture contract and handle financial settlements between the parties.
However, for the full 2024 financial year, Playtech reported a post-tax loss of €24 million ($27.84 million), compared to a profit of €105 million ($121.8 million) in 2023. The loss was primarily due to €119.7 million ($138.852 million) in asset impairments, a €57 million ($66.12 million) write-off of deferred tax assets, and lower income from financial instruments.
As Playtech shifts to a new B2B-focused model, the company cut its net debt by 50% to €142 million ($164.72 million) and secured a new €225 million ($261 million) loan from an FTSE-listed company.
Playtech’s management has set new mid-term targets, aiming to achieve: Adjusted EBITDA of €250–300 million ($257.5 million–$309 million).Free cash flow of €70–100 million ($72.1 million–$103 million) for ongoing operations. Following the completion of the Snaitech sale, Playtech plans to distribute a special dividend of €1.7–€1.8 billion ($1.751 billion–$1.854 billion) to shareholders.
Brian Mattingley, Chairman of the Board, commented: “The sale of Snaitech marks a transformational moment for Playtech, enabling us to deliver exceptional shareholder value through a special dividend of up to €1.8bn ($1.854 bn), as well as reposition the Group for long-term growth as a pure play B2B leader.
We believe we have the right balance sheet, a clear strategic direction and accelerating growth in high-growth markets to capitalise on the numerous opportunities that lie ahead.”
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