Interactive
UK – Playtech revenues fall 25 per cent
By Lewis - 12 March 2021
Playtech revenues fell 25 per cent to €1.08bn in 2020. B2B adjusted EBITDA of €125.8m was down 40 per cent at constant currency versus 2019 due to retail closures, a decline in Asia and significant hardware sales in the 2019 comparative.
Snaitech adjusted EBITDA decreased to €132m (2019: €162.5m) due to retail closures and cancellation of sporting fixtures, partially offset by strong cost control and 58 per cent growth in online revenues compared to the previous year.
Mor Weizer, Playtech’s CEO, commented: “The attitude and skill of our people, and the strength and diversification of our technology-led business model has enabled us to deliver a robust financial performance in spite of the challenging backdrop.
“Playtech also made significant strategic and operational progress by adding new brands, expanding existing relationships and entering new markets.
“We are particularly pleased with the excellent progress we have made in the US market, launching with bet365 and Entain in 2020, and signing milestone agreements with the Greenwood companies in 2021 to license our products in Michigan, Indiana, New Jersey and Pennsylvania.”
Playtech has praised a ‘good start’ to 2021 in January and February in context of ongoing lockdowns in certain markets with B2B and B2C online businesses expected to continue to perform strongly.
The company is ‘cautious’ about retail recovery as lockdowns are expected to remain in major markets into Q2. Playtech is increasing investment in US to capitalise on momentum from Parx and Novomatic deals alongside a focus and commitment to returning capital to shareholders whilst ‘balancing the needs of the business and taking a prudent approach to its capital structure and leverage’.
Mor Weizer continued: “Snaitech has continued to excel in Italy despite the retail closures in 2020.
“Snai achieved the number one market share position in Italy across online and retail sports betting and grew its overall online revenue by 58 per cent in 2020. Italy continues to offer significant growth potential, and Snaitech is ideally positioned to capitalise on this opportunity.
“As the leading technology company in the gambling industry, our licensees look to us to deliver innovation that changes the way players experience gambling entertainment.
“Key to this approach is Sustainable Success, our ESG commitment launched in 2020, which will consolidate our position as a global leader in safer products, data analytics and player engagement solutions and commits to grow our business in a way that benefits our people, our communities, the environment and our industry.
“The significant strategic and operational progress we achieved in 2020 has placed us in a strong position to capture the exciting market opportunities ahead.”
