Playtech says its first quarter results were good and aligned with expectations. The company still favours a B2B operating model, with strong growth in its core areas. These include Live Casino and Software-as-a-Service (SaaS), especially in the US and in partnership with Caliplay.
Shortly, the company is expected to develop innovative games, among which crash games have a special place. There are already such projects on the market, such as Aviator by Spribe, which has already demonstrated a confident success: the game is one of the most popular in the iGaming field in 30+ jurisdictions. It is presented in several thousand online casinos. Their list can be found on special informational sites. For example, on the Aviator apps. There is the most up-to-date selection of such platforms.
However, the development of innovative games is still in the plans. Playtech has other priorities at the moment. A strong start and strategic asset sales allow the company to maintain its momentum. Its main revenue driver remains Caliplay, with the group’s revenue also supported by software fees. The revised strategic agreement between the two firms came into effect on March 31, and it was a strategic change, as from that date, Playtech is no longer eligible to receive additional B2B fees. Still, it does get a significant dividend benefit as it became a 30.8% owner of Caliplay.
The performance of Playtech’s SaaS division stands out significantly, as several international agents have seen their revenue grow strongly. As such, this more profitable and less capital-intensive segment continues to play an increasing role in the group’s revenue profile.
However, the company notes other challenges, particularly those related to regulatory issues in Latin America and elsewhere. Brazil, for example, continues to go through a transition period, and Colombia has temporarily introduced VAT on online gaming. These are temporary obstacles, but Playtech has no doubts about the long-term potential and considers these markets key.
Speaking of significant developments, it’s selling Playtech’s Snaitech business to Flutter Entertainment for €2.3 billion. At the same time, €1.8 billion will be returned to shareholders as a special dividend on June 12. The company will also purchase €150 million in senior secured bonds to further demonstrate its financial strength, which is part of its strategy to bolster its balance sheet. Meanwhile, Playtech’s German operations sale to HappyBet is still pending. Updates on this matter are expected shortly.
Also, we should not forget about the change in the company’s management—John Glezur officially took over as chairman, a position previously held by Brian Mattingly. This important event took place at Playtech’s annual meeting.
