Playtech's Performance for H1 2020 is a Good Sign for the Future of iGaming
Published August 10, 2020 by Lee R
Playtech seized on the unique challenges posed by Covid to adapt its model effectively.
Leading gaming supplier Playtech has shown resilience in the latest performance update for H1.
Proceeds
While corona took it's toll, management's measures to preserve cash flow paid off with
adjusted EBITDA of over €160m ($189m) for 2020 H1.
Driver of Growth
The gaming supplier accredited online businesses, driven by the increased market volatility and trading volumes of its TradeTech division.
Re-opening Results
Playtech further affirmed that the strong performance continued into July with the re-opening of land-based venues and live sport to bring July adjusted EBITDA to normal levels.
Adaptation
During the shutdowns, Playtech's online casino, bingo and poker all only grew for H1 2020.
The B2B Hit
Playtech's B2B sector took the main hit, as impacted by retail closures and March's live sport suspension.
Intriguing Management Strategy
Playtech specifically accredited its management strategy for Q2 's take of €600m plus in available liquidity, with more figures to become available in interim results on 17 September.
Playtech Leader Speaks
Playtech CEO Mor Weizer lauded the “outstanding response” from his management team for “the early actions taken to protect the business” which resulted in the “outstanding operational resilience during this challenging period” to build positive momentum coming out of the closures:
"I am confident the actions we have taken will help us emerge stronger and cement our market-leading position."
Playtech's Importance
These are significant words for the iGaming industry, as Playtech is one of iGaming's largest global suppliers of online gaming and sports betting software. To date, iGaming operators from all over the world rely on the turnkey solutions offered by the Isle of Man-based company that was originally founded in Estonia.
In the company's 20th year of existence in 2019, the company pulled in revenues of
1.508 billion EUR, providing games to the world through leading subsidiaries such as Quickspin, YoYo Games, and TradeTech Alpha Limited.
Outlook
The strong growth Playtech has reported post-Covid indicates that one of iGaming's long-time most important providers has what it takes to succeed post-Covid and contribute mightily to the sustenance of the overall industry. The forthcoming details on the measures management took are the most important addition to this story to watch for moving forward.
