Playtech B2B unit hits medium-term targets in 'landmark year'

(Sharecast News) - Software developer Playtech said on Thursday that its business-to-business unit had hit medium-term targets ahead of schedule in what it branded a "landmark year". Playtech said reported underlying earnings had fallen 12% in FY24 to €358.8m, while revenues were up 5% at €1.79bn. However, on an adjusted basis, EBITDA was up 11% at €480.4m and post-tax profits surged 42% to €223.5m.

The FTSE 250-listed firm also drastically reduced its net debt position by 49% to €142.8m following the €2.3bn sale of Snaitech to Flutter, as well as "material improvement" in cash flow generation.

Playtech stated its performance was driven by "strong momentum" in B2B, which saw adjusted EBITDA grow 22% to €222.0m, reaching its medium-term target range of €200.0m-250.0m ahead of schedule.

Chief executive Mor Weizer said: "2024 marked Playtech's 25th anniversary, and was a year of transformational change for the business. The expected sale of Snaitech to Flutter Entertainment will deliver significant returns for shareholders, while the revised agreement with Caliplay will underpin Playtech's future growth as a predominantly pure-play B2B business. The group also delivered an excellent financial performance, with adjusted EBITDA (including Snaitech) slightly ahead of previously raised expectations."

As of 1020 GMT, Playtech shares were up 0.55% at 737.0p.

Reporting by Iain Gilbert at Sharecast.com