Playtech
plc (LSE: PTEC) announced today (Monday) that it expects its full-year 2024
adjusted EBITDA to surpass current consensus expectations, driven by robust
performance in its B2B division during the first half of the year. In addition,
the company has reached a new agreement with its current partner, Caliplay.

Playtech Reports Strong H1
2024 Performance

The
London-listed company reported solid trading for the period from January 1 to
June 30, 2024, with continued growth trends noted
in its May AGM statement. Playtech’s B2B segment showed particular
strength, benefiting from revenue growth in the Americas and tighter cost
control measures.

In its B2C
division, Snaitech continued to see underlying growth in wagers, despite facing
headwinds from customer-friendly sporting results in Italy. Playtech also
confirmed ongoing discussions with Flutter regarding the potential sale of
Snaitech, though no definitive agreement has been reached.

However,
detailed figures were not provided in the latest trading update. These will be
presented on September 30, when the report for H1 2024 is published. The
company’s previous full metrics were released in March, when it reported
financial results for 2023, showing adjusted revenue grew 7%, and EBITDA
increased 9% to €423.3 million compared to 2022.

Revised Caliplay Agreement

In a
separate announcement, Playtech revealed a revised strategic agreement with
Caliplay, a subsidiary of Corporación Caliente. Under the new terms, Playtech
will hold a 30.8% equity stake in Caliente Interactive, Inc., the new
U.S.-incorporated holding company for Caliplay. The deal also includes a
renewed eight-year B2B software license and services agreement, along with an
additional $140 million cash payment to Playtech over four years.

“During the
past nine years, we have worked closely with Caliplay to create a successful
and rapidly growing digital business in Mexico,” Mor Weizer, CEO of Playtech,
said. “The revised arrangements mark the beginning of an exciting new chapter
that will build on the impressive progress to date, with a view to driving
significant further growth for Cali Interactive in the future.”

Playtech
confirmed that Caliplay has resumed paying software and services fees, with
over €150 million of previously unpaid fees now received. The company also
reported strong performance from Caliplay in the first half of 2024.

This article was written by Damian Chmiel at www.financemagnates.com.

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