Playtech (PTEC) H1 2024 earnings summary

Executive summary

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

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

• Finalized a revised strategic agreement with Caliplay, securing a 30.8% equity stake and future dividend rights.

• Leverage reduced to 0.5x, pro forma 0.2x after Caliplay cash receipt, strengthening the balance sheet.

• Board confident in delivering on multiple B2B growth opportunities.

Financial highlights

• Group revenue grew 5% to €906.8M in H1 2024; adjusted EBITDA rose 11% to €243M.

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

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

• Adjusted operating cash flow at €150.7M, reflecting Caliplay working capital impact.

• Free cash flow increased 5% to €155.9M.

Outlook and guidance

• Confident in delivering 2024 adjusted EBITDA ahead of prior expectations; on track to meet medium-term B2B EBITDA target of €200–250M by end of 2024.

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

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

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

• Board confident in ability to execute on multiple growth opportunities across key markets.