Playtech Treads on Trading to Navigate Corona Quarter, but do all Suppliers Have the Same Flotation Power?
Published May 28, 2020 by Lee R
Trading interests fared better for Playtech than gaming ones to sustain Playtech.
One gambling mainstay held the course in the quarter of corona.
Playtech Holds Firm
Playtech reported an “extremely strong” trading period for the three months to 31 March, with adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) totaled €117.0m (£104.7m/$128.0m).
Trading Credit
Playtech lauded TradeTech's financial arm for harnessing the trading benefits of high trading volumes during corona quarter's volatile market.
Snaitech Factor
The key Snaitech acquisition was paying off well in January and February prior to infamous corona virus hit that shut down the sporting events and retail betting shops in Snaitech's home market of Italy.
Marching through March
Despite coronavirus, the March totals were consistent with Playtech's original expectations for the year.
The momentum from the growth flowed into April to open Playtech's Q2, where adjusted EBITDA of €23m was garnered to bring the cumulative 2020 adjusted EBITDA to €140m.
Preserving the Tide
Playtech's performance to 30 April further reflected positive performance in B2B businesses, which offset the hit to retail with the rash of closures.
Staying the Course
Playtech also moved forward with expansion plans by adding new tier one licensees including Betsson, Kindred and Svenska Spel and surpassed 20 new brands for 2020, keeping pace for its year target of 50.
B2C
Key acquisition Snaitech carried the B2C department, only losing slightly for April in adjusted EBITDA.
Snaitech now has to buck up and wait for the appropriate reopening of retail locations in Italy, whose time frame has yet to be put back on the clock.
Outlook
With Playtech's TradeTech business generating adjusted EBITDA of over €45m in the four months to the end of April, any industry company with a trade interest seems to have a better chance of riding out the corona period, while those that don't might be wise to catch this wave of apparent resilience by adding a trading arm to their portfolios as well.
