Playtech, a leading gambling software company, revises its earnings forecast positively following strategic developments.
- The firm’s B2B segment shows significant growth, prompting an optimistic outlook for future earnings.
- A lucrative sale of Snaitech is set to return €1.7bn to shareholders, enhancing investor confidence.
- Playtech’s revenue increased by 5% to €906.8m, while profits climbed by 23%, highlighting strong financial health.
- CEO Mor Weizer expresses confidence in the company’s strategy and US market expansion opportunities.
Playtech has demonstrated its strategic prowess by boosting its earnings forecast due to a standout performance in its business-to-business sector. The company has observed a marked improvement in earnings, attributing this success to substantial contributions from its key markets and effective cost management.
A significant financial maneuver involved the sale of Playtech’s Italian division, Snaitech, to Flutter for €2.3 billion. This move not only facilitates a €1.7 billion return to shareholders but also aids in settling outstanding financial obligations, reinforcing Playtech’s robust financial standing.
The company’s revenue experienced a 5% increase, rising from €859.6 million to €906.8 million. Meanwhile, after-tax profit jumped by an impressive 23%, reaching €105.4 million. Notably, there was a 22% rise in diluted earnings per share, which climbed from 17.5 cents to 33.6 cents, underscoring the company’s fiscal strength.
CEO Mor Weizer highlighted the company’s robust results and strategic execution aimed at optimizing the B2B segment. He pointed out the broad-based growth achieved across numerous markets and emphasized high operating leverage and stringent cost controls as pivotal factors in their success.
Looking forward, Playtech is enthusiastic about its expansion prospects in the United States and Canada, where recent operations have seen revenues triple. Weizer remains optimistic about the vast opportunities these markets present, supported by a clear strategic direction and solid financial foundation.
Despite a slight revenue dip in Snaitech by 1% to €483.6 million, Playtech reported “good growth in wagers,” which was balanced by “customer-friendly sporting results.” Weizer acknowledged Snaitech’s significant recent contributions to Playtech’s growth.
The disposition of Snaitech marks a pivotal moment for Playtech, enabling a substantial return to shareholders and positioning the company to capitalize on future growth opportunities. Weizer shared his excitement about the prospects ahead for Playtech’s remaining portfolio.
With a robust financial strategy and promising market opportunities, Playtech is poised for continued success.
