Playtech Reports Record Revenue and EBITDA in 2022

Prateck unveiled its complete financial report for the year 2022, showcasing robust growth trends. Revenue surged by 33%, reaching €1.6 billion, fueled by exceptional performance in its commercial-to-commercial sector and Snaitech operations.

The gaming software provider’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) also experienced a substantial increase, climbing by 28% from €317.1 million in 2021 to €405.6 million in 2022. Although the company reported a 26% rise in adjusted net income, from €127.6 million to €160.5 million, its actual profit took a significant dip, falling by 94% from €686.7 million to €40.6 million.

Prateck attributed this downturn primarily to a reduction in unrealized gains on derivative financial assets in 2022, leading to a €583.2 million decrease in the value of these assets, accounting for the majority of the profit decline.

Despite this setback, Prateck expresses satisfaction with its record performance, with CEO Mor Weiser (pictured) crediting the collective efforts of all departments.

“2022 was a year of remarkable achievement for Prateck, with record revenue and EBITDA surpassing market expectations,” stated Weiser.

Playtechs robust performance was propelled by all of its business divisions, with B2B expansion fueled by Europe (excluding the United Kingdom) and the Americas, while B2C achievement was driven by Snaitech’s sustained strong performance in the Italian retail and online marketplaces.

Playtechs B2B division experienced “very robust” growth in regulated markets throughout the year, with total income increasing by 14% to €632.4 million. The company reported adjusted EBITDA of €160.2 million, compared to €139.2 million in the corresponding period last year.

The provider emphasized that this expansion occurred against the backdrop of the ongoing conflict in Ukraine, where Playtech employs over 700 individuals, representing about 10% of the company’s total workforce.

“I want to acknowledge our colleagues in Ukraine and applaud the hard work of our crisis management team, who have gone above and beyond to support our Ukrainian colleagues and their families,” said Weizer.

Geographically, income in Europe (excluding the United Kingdom) grew by 31% at constant currency to €184.6 million, which the company stated was driven primarily by the Netherlands, “with significant contributions from Poland, Spain and Ireland.”

Across the Atlantic, Playtechs Americas B2B business also witnessed strong growth, with revenue reaching €144.7 million, a 27% increase from 2021.

The Isle of Man-based supplier highlighted that its performance increase was driven by ongoing expansion in the Mexican Caliente and Brazilian markets.

Playtech also underlined that they had made “substantial progress” in implementing their US strategy, citing numerous partnership agreements declared over the past year.

Weizer stated: “From a strategic standpoint, we have continued to advance, successfully selling Finalto, continuing to streamline our strategy, and making significant progress in North America, launching the IMS platform in partnership with Parx Casino in Pennsylvania, and signing several important new deals, including Golden Nugget, WynnBet, Resorts, and 888.”

He added: “We have commenced the new financial year with good momentum and announced a significant partnership with Hard Rock Digital. Despite the persistent instability in the macroeconomic and political climate, we remain optimistic about the future and believe we can generate value for all stakeholders in a sustainable and responsible manner.”

The organization also reported robust cash flow in 2022, with adjusted operating cash flow reaching €397 million.

In terms of Playtech’s B2C business, Snaitech’s revenue rose by 54%, from €584.7 million to €899.8 million. This reflects the recovery of the business following the closure of its retail network in the first half of 2021 due to the COVID-19 pandemic.

Increasing Expenses
B2B costs increased by 14% in 2022, reaching €472.2 million, compared to €415 million in 2021.

The enterprise unveiled its fiscal outcomes for the preceding twelve months. The document indicated that the entity’s research and development outlays rose by 12% to €87.5 million, general and administrative expenditures climbed by 23% to €82.6 million, Playtech’s sales and marketing expenses ascended by 16.8% to €16.8 million, and, most importantly, operating expenses climbed by 11% to €285.2 million.

In the meantime, Playtech details its consumer-facing expenses by subsidiary rather than business activity. Snaitech’s costs also rose by 61% from €182.6 million to €254.2 million – again driven by the company’s reopening of its retail operations in 2022. Its Sun Bingo costs increased by 15% to €63.3 million, while HappyBet costs witnessed a slight increase of 4% to €30.9 million, with revenue of €20.1 million.

“This robust performance is driven by vigorous demand for Playtech’s business segment in the commercial market, particularly in the regulated segment, which experienced a 14% year-on-year increase in revenue to €632.4 million,” stated Neil Shah, head of investment research at Edison Group, an investment research firm.

“Moreover, the company’s business-to-consumer segment, encompassing Italian sports betting and gaming company Snaitech, observed a substantial revenue increase of 48% to €983.1 million,” he remarked. “Overall, these outcomes demonstrate Playtech’s strong momentum and augur well for the coming year.”

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