Playtech Posts 2024 Financial Results with Solid Gains

Revenue and Profit Highlights

Cash flow stayed strong, too. Net operating cash rose to €391.1 million from €358.8 million, while free cash flow jumped to €294.1 million from €254 million. Still, a reported after-tax loss of €24.2 million flipped 2023’s €105.1 million profit, tied to one-off costs.

The B2B segment led the charge. Revenue there grew 10% to €754.3 million from €684.1 million, or 11% at constant currency. Adjusted EBITDA in B2B soared 22% to €222 million, fueled by big gains in the Americas: U.S. and Canada spiked 126% to €29.8 million, while Latin America rose 12% to €221.8 million.

SaaS revenue popped 59% to €80 million, hitting the top of Playtech’s mid-term goals early. CEO Mor Weizer called it “a year of transformation,” pointing to strategic moves setting up a leaner B2B future.

Debt’s also down. Net leverage fell to 0.3x from 0.7x, with net debt dropping to €142.8 million from €282.8 million. The Snaitech sale to Flutter, set for Q2 2025 at €2.3 billion, will fuel a special dividend of €1.7-€1.8 billion for shareholders. A reworked Caliplay deal, wrapping up March 31, 2025, cements Playtech’s B2B shift, targeting €250-€300 million in adjusted EBITDA mid-term.

Segment Breakdown and Challenges

B2C had mixed results. Continuing operations, like HAPPYBET and Sun Bingo, saw revenue rise 7% to €97.8 million from €91.6 million. HAPPYBET’s adjusted EBITDA loss held steady at €11.8 million, while Sun Bingo and other B2C bits grew 7% to €78.9 million, though their EBITDA dipped to €4.5 million from €6 million.

Snaitech, a discontinued unit, edged up 1% to €956.1 million in revenue, with EBITDA up 4% to €265.7 million. Soft sports results dented Snaitech’s year, per the report.

The Americas stood out. Beyond the 126% U.S.-Canada jump, partnerships with DraftKings, FanDuel, Bet365, and Penn Entertainment drove growth. Live Casino deals with MGM Resorts and new PAM+ rollouts with operators like Delaware North added muscle. In Latin America, Colombia’s Wplay platform kept the pace, lifting revenue 15% at constant rates. Regulated B2B markets overall grew 10%, showing broad traction.

Not all was smooth. Snaitech’s sale marks a pivot from B2C, and HAPPYBET’s steady loss flags ongoing hurdles. The €24.2 million loss reflects costs tied to restructuring and the Caliplay shift. Still, cash flow gains and debt cuts kept the balance sheet solid, with €417.9 million in adjusted operating cash.

Strategic Moves and Outlook

Playtech also moved some pieces. The Flutter deal and Caliplay tweak anchor a B2B focus, while U.S. expansions with eight new branded games, like Breaking Bad, tapped local tastes.

AI tool BetBuddy rolled out with Ocean Casino and Delaware North, boosting safer play. New board member Doreen Tan joined, replacing Anna Massion, as Weizer preps to step down.

The numbers tell a story of growth—€1.79 billion in revenue, a 126% Americas spike, and €294.1 million in free cash. With Snaitech’s exit looming and Caliplay locked in, Playtech’s betting big on B2B. For 2025, it’s about cashing out that €2.3 billion sale and keeping the U.S. hot streak alive.