Playtech has reported its financial performance for the year 2024, showcasing a significant post-tax profit of €157 million, marking a 42% increase compared to the previous year. The overall results reflected varied performance across different divisions as the company prepares for a strategic transformation, particularly with the upcoming sale of its Snaitech unit.
Total revenues, which include both continuing and discontinued operations, rose by 5% to reach €1.79 billion, up from €1.71 billion in 2023. Adjusted EBITDA also saw an increase of 11%, climbing to €480.4 million from €432.3 million reported in the previous year.
Particularly noteworthy was the B2B division’s performance, which experienced robust growth in regulated markets, especially in the Americas. B2B revenue escalated by 10%, amounting to €754.3 million, compared to €684.1 million in 2023. Adjusted EBITDA for the B2B sector witnessed a remarkable 22% rise, reaching €222 million from €182 million.
The company highlighted the successful performance of its core B2B business, noting that it exceeded its medium-term targets set two years earlier. The Americas contributed significantly to this growth, especially with a standout performance from Wplay in Colombia. Progress continued in expanding operations within the United States and Canada, with an ongoing influx of partnerships and operator engagements.
In the B2C segment, revenue experienced a modest increase of 2%, totaling €1,052.7 million in 2024, compared to €1,037.0 million the year prior. Adjusted EBITDA in this segment rose by 3% to €258.4 million from €250.3 million in 2023. However, the performance of the Snaitech division within the B2C segment was affected by favorable outcomes for customers in sports betting throughout the year.
Playtech has also announced a definitive agreement to sell the Snaitech unit to Flutter Entertainment at an enterprise value of €2.3 billion. Following this transaction, the company plans to distribute a special dividend ranging between €1.7 billion and €1.8 billion, expected to be executed following the sale’s completion slated for the second quarter of 2025.
In relation to its strategic evolution, Playtech revealed an updated agreement with Caliplay, a partner operating in Mexico. As per the new terms, Playtech will hold a 30.8% stake in Caliente Interactive, Inc., a newly established holding company incorporated in the United States.
The company has demonstrated strong performance in the United States and Canada, with revenue rising 126% in 2024 to reach €29.8 million. Playtech is actively pursuing growth in these markets through various new partnerships and enhancements to its product offerings.
Looking toward the future, Playtech has established new medium-term financial targets for its ongoing operations. The company’s objectives include an Adjusted EBITDA range of €250 million to €300 million and a free cash flow target of €70 million to €100 million. Additionally, net debt has decreased significantly to €142.8 million as of December 31, 2024, down from €282.8 million in the previous year, following a €200 million partial repayment of its 2019 bond in December.
Early indications for 2025 trading are positive, with strong underlying growth patterns noted in the B2B operations. Nonetheless, the company is bracing for challenges in specific areas, including the closure of its Austrian HAPPYBET business and the impact of ongoing regulatory changes in various jurisdictions. Overall, Playtech is in the midst of a transformative period, positioning itself for future growth while managing operational hurdles.