Half Year 2024 Playtech PLC Earnings Call Transcript
Key Points
- Playtech PLC (PYTCF) reported an excellent financial performance in H1 2024, with adjusted EBITDA of EUR243 million, up 11% and ahead of expectations.
- The B2B division saw significant growth, with adjusted EBITDA increasing by 38%, driven by strong performance in the Americas.
- The company finalized a revised strategic agreement with Caliplay, setting the foundation for growth in both domestic and international markets.
- Playtech PLC (PYTCF) reached a definitive agreement to sell Snaitech to Flutter for EUR2.3 billion, realizing significant shareholder returns.
- The balance sheet remains robust, with leverage declining to 0.5 times, and further reduced to 0.2 times on a pro forma basis after cash received from Caliplay.
- B2C revenues remained flat, and adjusted EBITDA declined by 6% compared to last year due to customer-friendly sporting results.
- HAPPYBET saw revenues fall by 7% in H1, driven by the rationalization of retail sites in Germany and Austria, leading to the decision to close the Austrian business.
- The revised agreement with Caliplay will result in a EUR30 million to EUR40 million cash headwind in 2025 compared to 2024.
- The US business remains loss-making, with negative EBITDA in the teens to the better part of EUR20 million, and profitability is still a few years away.
- Revenue growth in Europe was flat at constant currency, with declines in Greece and Poland offsetting growth in Spain, Italy, and Ireland.
So good morning, everyone. Firstly, I want to thank you all for attending today. It's been an eventful and exciting couple of weeks for Playtech. On to slide 2. I'll begin with the highlights before handing over to Chris McGinnis, our CFO, who will take you through the financials and the outlook. I'll then update you on our progress against our strategic priorities.
Turning now to slide 3. I'm pleased to report an excellent financial performance in H1 2024, delivering adjusted EBITDA of EUR243 million, up 11% and ahead of expectations as we flagged in our trading statement issued a couple of weeks ago. This strong performance was driven by the B2B division, which saw adjusted EBITDA growth of 38% with the Americas, the standout region.
Given the performance in the first six months of 2024, the B2B segment is ahead of schedule to be within the medium-term adjusted EBITDA target range of EUR200 million to EUR250 million in 2024, set just 18 months ago. A couple of weeks ago, we made two announcements that will
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