Playtech plc (LSE: PTEC) announced stronger-than-expected financial results for the first half of 2024, driven by strong performance in its B2B division and strategic developments. The post-tax profit rose to €105.4 million, growing by 23% compared to €85.7 million reported in H1 2023.

Playtech Reports Strong H1 2024 Performance, Raises Full-Year Outlook

The company reported a 5% increase in revenue to €906.8 million for the six months ended June 30, 2024. Adjusted EBITDA rose 11% to €243.0 million, primarily due to impressive growth in the B2B segment.

Playtech's B2B division saw a 14% revenue increase to €382.2 million, with Adjusted EBITDA surging 38% to €112.3 million. The Americas region was a key driver, with revenue growth of 42% to €141.6 million.

"We've executed our strategy to grow and improve the B2B business, delivering broad-based growth with strong contributions across our key markets,” commented Mor Weizer, the CEO of Playtech. “We're also delighted to have agreed a revised strategic agreement with Caliplay, our partner in Mexico.”

The company made significant strides in its US and Canada strategy, with revenue in these markets growing over 200% compared to H1 2023. Playtech expanded relationships with major operators like Rush Street, BetMGM, and DraftKings, while also successfully migrating Ocean Casino Resorts onto its platform.

Snaitech Sell

In a separate development, Playtech reached an agreement to sell its Snaitech division to Flutter for €2.3 billion. The company plans to return €1.7-1.8 billion to shareholders following the transaction's expected closure in Q2 2025.

"A couple of weeks ago, we announced the sale of Snaitech to Flutter for €2.3 billion and our plan to return €1.7 - 1.8 billion to shareholders,” Weizer added. “Snaitech has been a key part of Playtech's growth in recent years and the team delivered another solid performance in the first half, despite the impact of customer-friendly sporting results.

Based on the strong first-half performance, Playtech now expects its full-year 2024 Adjusted EBITDA to be slightly ahead of market expectations. The company is on track to achieve its B2B Adjusted EBITDA medium-term target range of €200-250 million in FY 2024, earlier than anticipated.

"We are excited about what the future holds for the remaining Playtech business and we see plenty of opportunities ahead of us," Weizer added.

Over two years ago, Playtech also sold Finalto (formerly TradeTech), its financial division. The new owner of the company became Hong Kong-based Gopher Investments, which paid $250 million in an all-cash sale.