Playtech Absorbs Losses in 2019; Continues to Transition in 2020
Published March 30, 2020 by Lee R
Snaitech provided key revenue in a year of transition for Playtech.
Gaming heavyweight Playtech had to absorbed a net loss blow in 2019 despite a strong performance by its Italian B2C business Snaitech.
The Revenue Rises
The year ending 31 December 2019 showed a 23% boost in revenue to €1.51bn, with adjusted EBITDA increasing 11% to €383.1m.
Ultimate Losses
However, discontinued operations and tax to brought an overall net loss for the year of €19.6m.
Drivers of Growth
The growth areas were spurred by the 15% rise in core B2B division sports and live casino offerings.
Hardware sales drove sport revenue's 56% rise, against B2B gambling revenue's 2% drop to €553.9m.
B2B Growth
Drivers of growth in B2B included launches in Sweden and Switzerland; the addition of 50 new brands to the software-as-a-service (SaaS) offering; and increasing the company's US presence.
Snaitech's Contribution
Another driver of revenue was the first full year submission from Snaitech, after Playtech's acquisition of the Italian B2C brand in June 2018, whose strongest growth was in online stakes at 31%.
B2C
Playtech's most successful segment was B2C gambling revenue, up 56% to €900.5m.
TradeTech Falls
Unfortunately, “challenging market conditions” brought down Playtech's B2B and B2C Financials division TradeTech Group plummeted 27% to €67.9m.
Playtech Chairman Speaks
Playtech chairman Alan Jackson lauded the strong B2B growth and the “strategic progress” Playtech made this year in “laying the foundation for future growth” through new market entry; new customer signings; expansion of existing relationships; and continuing innovation with new product launches.
Snaitech Praised
Jackson praised Snaitech's “fantastic 2019” for “the number one market share position for online betting and gaming in Italy in H2 2019.”
Regulated Revenue Growth
Jackson called the regulated revenue rise of 8% (88% to 80%) evidence “the business continues to transition and deliver a well-diversified higher quality revenue profile.”
Outlook
With Jackson set to leave this year, Playtech enters a transition as the adaptation to new market conditions calls for continued reliance on organisational strengths.
