Playtech bets on strong end to the year, shares spark

(Sharecast News) - Shares in Playtech rallied in early trading on Thursday, on the back of a bullish full-year outlook.

Adjusted revenues at the FTSE 250 firm - which provides platform, content and other services to the online gambling industry - fell 10% to €387m in the six months to 30 June, while earnings before interest, tax, depreciation and amortisation were 16% lower at €91.6m.

Playtech had previously guided for interim EBITDA of "at least" €90m.

The tech firm is currently undergoing a major overhaul. Earlier this year, it sold Italian gaming business Snaitech to Flutter Entertainment for €2.3bn, as it refocuses on being a pure business-to-business player.

The sale has now completed and around €1.8bn of the proceeds will be returned to shareholders through a special dividend.

Playtech also revised its agreement with Caliente Interactive, effective from 31 March, and now has a 30.8% equity holding in the Mexican sports betting firm.

Mor Weizer, chief executive, said: "These results show the strong start Playtech is making in its transition back to its roots as a predominantly pure-play B2B business.

"Our revised agreement with Caliente sets both parties up for continued success in the future."

Looking to the rest of the year, Weizer said the second half had "started well", despite headwinds in Brazil and Colombia, leaving Playtech on track to beat full-year expectations.

"The strength of our balance sheet will allow us to increase investment in the US and Brazil in the second half, to drive continued growth," Weizer noted.

As at 0830 BST, the stock was trading 9% higher at 433.5p.

Founded in 1999, Playtech employs around 7,400 people across 20 countries. Clients include Entain, Bet365, Rank Group and Paddy Power, among others.