Playtech reports 11% rise in EBITDA to $522 million as B2B growth drives 2024 performance

Gambling technology provider Playtech reported an 11% year-on-year increase in adjusted EBITDA to €480.4 million ($522 million) for 2024, as strong B2B growth and expansion in the Americas offset restructuring challenges.  

Total revenue for the year rose 5% to €1.79 billion, supported by a 10% rise in B2B revenue to €754.3 million, while B2B EBITDA surged 22% to €222 million. Revenue in the Americas, a key growth driver, climbed 19% to €251.6 million, with U.S. and Canadian operations expanding 126% year-on-year to €29.8 million ($32 million).  

"2024 was a landmark year for Playtech," CEO Mor Weizer said in a statement. "Our core B2B business had an outstanding year, achieving the medium-term target we set two years ago ahead of schedule."  

Playtech's Live Casino revenue surged 24%, while software-as-a-service (SaaS) revenue jumped 59% to €80 million. The company also expanded its responsible gambling efforts, launching its BetBuddy safer gambling tool with seven new brands, bringing its total reach to 23 brands across 14 jurisdictions.  

Brazil showed strong growth ahead of its expected regulatory reclassification in 2025, while Playtech deepened partnerships in Colombia and the U.S. The company also signed a revised strategic agreement with Caliplay, its Mexican joint venture partner, set to take effect on March 31, 2025, providing clarity on long-term fee structures.  

Playtech confirmed its planned €2.3 billion sale of Snaitech to Flutter Entertainment remains on track for Q2 2025 completion. The company intends to return €1.7 billion–€1.8 billion of the proceeds to shareholders via a special dividend.  

Snaitech, now classified as a discontinued operation, reported a slight 1% revenue increase to €956.1 million, with online revenue up 3%, though customer-friendly sports results weighed on overall performance.  

Playtech is also winding down its HAPPYBET operations, which posted an EBITDA loss of €11.8 million. The company has begun a sale process for its German business after closing its Austrian operations in the second half of 2024.  

Meanwhile, UK B2B revenue rose 8%, but Playtech faced challenges as one major client insourced its self-service betting terminals. B2B revenue declined in Greece, Poland, and the Netherlands, primarily due to contract losses.  

Despite growth, rising costs weighed on profitability, with EBITDA for continuing operations slipping 16% to €127.7 million. Playtech posted a €9.4 million pre-tax loss from continuing operations, compared to a €70.4 million profit in 2023.  

Net loss from continuing operations widened to €136.5 million, up from €12.1 million in 2023. However, adjusted net profit (including discontinued operations) jumped 58% to €235.9 million.  

Industry analysts at Regulus Partners noted Playtech’s return to a pure B2B focus following the Snaitech sale may come with risks. While the company remains strong in platform and customer relationship management (PAM/CRM) solutions, some analysts cautioned that its in-house content faces increasing competition from third-party providers.  

"Playtech’s key strengths in PAM/CRM and investment-led strategic partnerships create a highly resilient business, but in-house content continues to lose share to an increasingly dynamic and disaggregated supply chain," Regulus stated in a note.  

Looking ahead, Playtech has set a new medium-term adjusted EBITDA target of €250 million to €300 million, underpinned by its revised Caliplay agreement. The company also secured a €225 million revolving credit facility, replacing its existing €277 million facility, which will take effect after the Snaitech sale is completed.  

"The combination of Playtech’s industry-leading technology with its exposure to attractive markets underpins our confidence in the group’s new medium-term targets," Weizer added.