Trading update

Playtech posts strong first quarter, as takeover discussions progress

Reading time 1:34 min

Playtech released Thursday a trading update with 'very strong' results for the first four months of 2022, showing an 'excellent start' to the current financial year.

Adjusted EBITDA for the first three months amounted to over 100 million euros ($106.2 million), and the positive Q1 run rate has continued through April, according to the UK gambling software developer, which noted that the positive performance has been driven by both the B2B and B2C businesses.

The group's Italian brand Snaitech has seen the same positive trends continue from the second half of 2021, driven by its online business, retail recovery and favourable sports results. B2B performance has been driven by 'very strong momentum' from the Americas, in particular Caliplay in Mexico, in addition to a 'strong performance' across the wider B2B operations, including Live Casino.

The Live Casino business has also signed several new licensees and launched several new games. In North America, Playtech has signed multiple new customers in the US and launched several new partnerships in Canada following the opening of the Ontario market on April 4.

'The excellent start to the year gives the Board great confidence in the prospects for FY 2022,' the firm said in its trading update. 'As would be expected, the Board remains cautious and focussed given that we are at an early stage in the year, combined with the uncertain macro backdrop due to the pandemic and the war in the Ukraine.'

In addition, after the rejection of Aristocrat's merger proposal back in February, Playtech said Thursday there has been some 'positive progress' in discussions with the Hong Kong-based suitor TTB Partners regarding its potential offer for the company. 'However, 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,' Playtech said.

In February, Playtech CEO Mor Weizer and former boss Tom Hall teamed up with TTB Partners, an affiliate of Gopher Investments, a consortium of Asian and American investors that owns 4.97% of the shares, which withdrew its own bid for Playtech in November and the following month acquired only the financial arm of the company, Finalto. The decision to step back triggered a six-month restriction period, in accordance with UK rules. Playtech has said this restriction could be lifted on the consent of its board, and that it would be willing to consider a possible offer from TTB. The new potential buyer asked to be released from these restrictions that prevented it from making another offer until May 20which Playtech confirmed it granted

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