Playtech (PTEC) H2 2024 earnings summary

Executive summary

• Delivered strong 2024 results with adjusted EBITDA of €480M, up 11% year-over-year and ahead of expectations, driven by B2B momentum and operating leverage.

• Achieved B2B adjusted EBITDA of €222M, up 22%, reaching medium-term targets ahead of schedule.

• Announced sale of Snaitech to Flutter for €2.3B, with completion and special dividend of €1.7B–€1.8B expected in Q2 2025.

• Finalized revised Caliplay agreement, with Mexican antitrust approval and deal closing March 2025; Playtech to own 30.8% of new US holding company.

• Transitioning to a focused B2B model, leveraging equity stakes in Caliplay, Hard Rock Digital, and Galera.bet, and positioning for growth in regulated and newly regulating markets.

Financial highlights

• Group revenue grew 5% to €1,791.5M; adjusted EBITDA margin improved to 26.8% from 25.3%.

• Net debt reduced to €142.8M from €283M year-over-year, with leverage down to 0.3x.

• Free cash flow increased 16% to €294.1M; levered, post-tax FCF up 30% to €241.9M.

• B2B revenue up 10% to €754.3M, with margin expansion of 280bps; B2C revenue up 2%, EBITDA up 3%.

• SaaS revenues up 60% to €80M, hitting the upper end of the medium-term target.

Outlook and guidance

• New medium-term targets: adjusted EBITDA of €250M–€300M and free cash flow of €70M–€100M, including income from associates.

• 2025 CapEx expected at €90M–€100M, mostly for growth initiatives.

• Effective tax rate expected at 25%–28%, lower due to Snaitech sale.

• Confident in 2025 prospects as a predominantly B2B business, with strong B2B growth trends continuing.