Playtech has forecast at least €90 million ($102.9 million) in adjusted EBITDA for the first half of its 2025 financial year, the supplier reported in a trading update on Friday.
This would be some way short of the €243 million posted in H1 last year. However, Playtech has a very different structure to last year.
Playtech said the business, which completed the sale of two major assets in H1, continued to deliver a “strong performance” since its last statement in May. The group noted momentum across its B2B business and a better-than-expected contribution from income from associates.
The latter, it said, was due to its partner in Mexico – Caliente Interactive – benefitting from favourable sporting results in Q2. Caliente Interactive has also now declared and paid its first dividend to Playtech under a revised strategic agreement.
Incidentally, this new arrangement, which came into effect on 31 March, ended a dispute between Playtech and its Caliplay joint venture partner Caliente.
Playtech is now receiving dividends as a 30.8% equity holder in the venture. However, the group is no longer entitled to receive any additional B2B services fees.
Playtech completes Snaitech and HappyBet sales
The forecast figure excludes contributions from its former Snaitech business which was sold to Playtech in H1. It also includes the operating loss of HappyBet, which was also sold during the period.
Flutter Entertainment completed its acquisition of Snaitech on 30 April. The deal was valued at approximately €2.3 billion and formed part of Playtech’s switch in strategy to become a pure-play B2B operator.
Also forming part of this new approach was the sale of HappyBet, which went through on 28 May. The German-facing brand was sold to Pferdewetten AG subsidiary NetX Betting, just two months after Playtech began the sale process.
HappyBet was its only remaining B2C asset, with Playtech now entirely focused on B2B.
While the double sale will have inevitably impacted financial performance in H1, Playtech said this “simplified” business model will allow it to improve technology, grow its customer base and expand its share of wallet with existing customers.
What can we expect in H2?
Playtech is due to publish its full H1 results on 11 September. However, with the group over a month into its second half, it has updated the market on its performance so far.
The group said it continues to anticipate increased investment for growth in both the US and Brazil.
However, it said it remains mindful of the headwinds in Brazil and Colombia that hit its performance in Q1.
In its May trading statement, Playtech highlighted Brazil’s transition to a regulated market, as well as Colombia introducing a temporary VAT charge.
“Given the exciting growth opportunities ahead, the board remains very confident in Playtech’s ability to execute on its strategy as a predominantly pure-play B2B business,” Playtech said.
Playtech said adjusted EBITDA will be lower year-on-year following the sales of Snaitech and HappyBet.