Playtech (PTEC) H1 2024 earnings summary

Executive summary

• H1 2024 delivered strong results, with adjusted EBITDA up 11% to €243 million, driven by B2B growth, especially in the Americas.

• Sale of Snaitech for €2.3 billion will return €1.7–1.8 billion to shareholders and transitions the group to a focused B2B model.

• Finalized revised strategic agreement with Caliplay, providing greater certainty and a platform for future growth.

• Leverage reduced to 0.5x, with pro forma leverage at 0.2x after Caliplay cash receipt.

• Board confident in delivering on multiple B2B growth opportunities.

Financial highlights

• Group revenue grew 5% to €906.8 million in H1 2024; adjusted EBITDA rose 11% to €243.0 million.

• Adjusted EBITDA margin improved to 26.8% (up from 25.6%); B2B margin expanded to 29.4%.

• Net debt decreased 9% to €225.5 million; net debt/adjusted EBITDA at 0.5x, pro forma 0.2x.

• Adjusted operating cash flow was €150.7 million, impacted by timing of Caliplay payments.

• Adjusted post-tax profit up 23% to €105.4 million; adjusted diluted EPS up 22% to 33.6c.

Outlook and guidance

• Confident in delivering 2024 adjusted EBITDA ahead of prior expectations.

• On track to meet medium-term B2B adjusted EBITDA target of €200–250 million by end of 2024, earlier than planned.

• 2025 will see a cash headwind of €30–40 million from the revised Caliplay agreement, but B2B growth expected to offset over time.

• CapEx for 2024 expected at €170 million; effective tax rate guidance unchanged at ~30%.

• Strong balance sheet and cash generation provide flexibility for organic and inorganic growth.