Gaming software firm Playtech sees earnings jump as talks with Asia-based investors over a potential takeover deal roll on
- Playtech reported a 25% rise in annual earnings, its latest results reveal
- Talks with the TTB investor group are ongoing after Aristocrat deal collapsed
Playtech saw a 25 per cent jump in annual earnings last year, as the gaming software supplier continued talks with a group of Asia-based investors over a potential takeover deal.
The company posted adjusted core earnings of €317million (£265million), up 25 per cent on a 12 per cent jump in revenue to €1.2billion, driven by a strong performance in business-to-business operations, particularly in Latin America.
But Playtech cautioned investors that there is a risk of disruption to its operations from the war in Ukraine, where it has 700 employees, having already suspended business in Russia.
On the up: Gaming software supplier Playtech has reported a 25% jump in annual earnings
Playtech posted a reported pre-tax profit from continuing operations of €605million, up from a loss of €52.7million.
Chief executive Mor Weizer, said: ‘Our strong performance is underpinned by our B2B business, in particular the tremendous growth we have seen in the Americas.
‘We have made real progress in the execution of our US strategy, supported by new licences, new launches and new partnerships, and we continue to go from strength to strength in Latin America, buoyed by new strategic agreements across the region.’
‘In B2C, the story is similar, with Snaitech continuing to outperform the market, achieving the position of the number one brand across sports betting and retail in Italy.’
He added: ‘The macro-economic picture is of course uncertain, but we have started 2022 strongly, and with our businesses continuing to perform we are confident in our ability to continue to deliver against our strategy.’
The group’s strong online performance offset the hit from lockdowns and drove B2B revenue growth of 11 per cent at constant currency to €554million. Americas revenue jumped 64 per cent for the group’s B2B offering to €101.3million.
Playtech enjoyed strong growth in its Live Casino arm, with the opening of four new facilities across the US and Europe in the last year.
The company appointed Brian Mattingley as its chairman in June last year, who said this morning that the board ‘remains confident in the long-term prospects’ of the group.
Playtech also said the recommended offer from Aristocrat did not receive the requisite level of shareholder approval, but said discussions with the TTB investor group regarding its potential offer for the firm were ongoing.
Playtech’s proposed sale to Austrlian slot machine maker Aristocrat collapsed in February after the deal was rejected by 44 per cent of voting investors at a meeting.
Playtech shares rose in early morning trading, and were up 2.22 per cent or 13.50p to 622.00p just before 9.30am. The company’s share price has jumped over 40 per cent in the past year.