Playtech Records Substantial Revenue Increase In 2021

Playtech, the international developer of video slots and live dealer games for online casinos, has revealed its financial data for the full extent of 2021 and the figures show the company increased its revenue by 12 percent compared to 2020.

The corporation also reported an adjusted net profit for the year amounting to 112.3 million euros. Revenue for the twelve months of 2021 amounted to 1.21 billion euros, surpassing the 1.08 billion generated in 2020.

The main revenue source for Playtech remains Business-to-Consumer, this segment generated revenue of 663.7 million euros in 2021, 11.3 percent more than in the previous year. Most of that revenue was recorded from the Snai brand, which operates in Italy.

Playtech reveals that the revenue growth was entirely due to increasing demand for online gaming, as land-based activities still felt the impact of restrictions related to the novel coronavirus pandemic.

The Business-to-Business segment also recorded a revenue growth of 12 percent compared to 2020, generating revenue of 554.3 million euros. However, the company also had higher distribution costs compared to the previous year, leaving 317.1 million in adjusted earnings before interest, tax, depreciation and amortization (EBITDA). That figure represents an increase of 25 percent year-on-year.

In October 2021, Playtech received a takeover bid worth 2.9 billion dollars from Aristocrat Leisure Limited, the Australian developer of casino slot machines and digital games. Initially the Playtech board seemed to agree with the acquisition, but later developments and interest from rival bidders made the deal increasingly uncertain.

In February 2022, the Playtech shareholders had their say through a vote and decided to reject the takeover bid from Aristocrat. In total, shareholders representing 54.68% of Playtech voted in favor of the bid at a general meeting, well below the 75% threshold required for the deal to be approved. Shareholders representing 43.87% of the company voted against the merger.

Now Playtech is holding talks over a potential acquisition with TTB Partners, a global firm specializing in corporate finance and advisory. Brian Mattingley, the Playtech chairman, insisted that regarding TTB Partners “there can be no certainty as to whether an offer for the company will be announced, or the terms on which any offer might be made.”

Source: . Finance Feeds. March 25, 2022.