Playtech beats expectations as US casino deals boost growth

Gambling software firm Playtech’s full-year earnings came in ahead of market expectations as a string of prior deals with US casinos helped drive growth.

Adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) came in at €432.3m (£370.2m), a nine per cent rise year-on-year and ahead of already bumped-up guidance.

Adjusted post-tax profit fell two per cent to €156.8m (£135m) as the London-listed firm netted €1.7bn (£15.bn) in revenue.

The Americas proved the biggest driver of growth, with revenue up 46 per cent to €211.9m (£182m). Playtech noted the opening of a a third US live casino in Pennsylvania, taking its tally in the country to 11 and with further applications pending.

The firm has signed a string of license deals with US operators such as Pokerstars in recent years and it said it had now shifted its focus launching with the providers across multiple states.

Mor Weizer, chief executive, said: “Playtech performed very strongly over the year… As well as delivering excellent financial results, the group made important strategic and operational progress, including our expansion across the US, opening a third Live Casino facility in Pennsylvania and taking the number of licenses granted to 11 with further applications pending.”

Weizer added Playtech’s B2C division had delivered revenues exceeding €1bn for the first time. “In summary, we remain very confident in our ability to execute our strategy and to continue delivering value for our shareholders.”

Shares were up 1.5 per cent in early trading.

Looking ahead, Playtech is maintained its €200 to €250m and €300 to €350m target of adjusted EBITDA for its B2B and B2C segments, respectively.

A £700m takeover offer by Playtech for William Hill owner 888 Holdings was reportedly snubbed in July.

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