Full Year 2024 Playtech PLC Earnings Call Transcript
Key Points
- Playtech PLC (PYTCY) reported a strong financial performance in 2024, with adjusted EBITDA of EUR480 million, up 11% year on year.
- The B2B division showed significant growth, with adjusted EBITDA increasing by 22% to EUR222 million.
- The company signed two landmark agreements, including the sale of Snaitech for EUR2.3 billion, expected to complete in Q2 2025.
- Playtech PLC (PYTCY) reduced its net debt significantly from EUR283 million to EUR143 million by the end of 2024.
- The company is focusing on expanding in attractive markets like the US and Brazil, with US revenues growing over 150% in 2024.
- Margins are expected to be lower in 2025 due to new terms of the Caliplay contract and accounting treatment changes.
- HAPPYBET remains loss-making, with the Austrian part closed and the German part under review for potential closure or sale.
- The company faces challenges in Brazil due to strict onboarding processes causing high KYC rejection rates.
- Playtech PLC (PYTCY) identified underperforming businesses generating EUR20 million in EBITDA losses, which are under evaluation for restructuring or sale.
- The Asian market, particularly China, is not a focus, with revenues expected to be minimal following a major operator's exit.
So good morning, everyone. Firstly, I want to thank you all for attending today. It's been an exciting year for Playtech, and I'm looking forward to taking you through our performance and our plans for the future.
Onto 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 will then update you on our progress against our strategic priorities and our medium-term plan.
Turning now to slide 3. I'm pleased to report a strong financial performance in 2024, delivering adjusted EBITDA of EUR480 million, up 11% year on year and slightly ahead of previously raised expectations. This excellent performance was driven by strong momentum in the B2B division, which showed broad-based growth across our core markets and improvements in operating leverage. As a result, we grew B2B adjusted EBITDA by 22% to EUR222 million achieving our medium-term adjusted EBITDA target ahead of schedule, while also significantly improving our free cash flow
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