Get the full Playtech 2022 financial figures for the entire gambling company operations as well as B2B and B2C figures. (Image courtesy of Karolina Grabowska on Pexels)
The figures for Playtech are finally here giving us a sneak-peak at the casino and sports betting company’s 2022 financial figures. And the positive figures are down to its top-performing B2B sector.
Even though we have seen some ups and downs with Playtech’s stock value, the company has still increased its revenue from 2021 to 2022. However, there was a huge drop in profits reported with a year-on-year decline of 94%.
If we want to add a silver lining to it all, the main point here is the UK and London Stock Exchange-listed iGaming firm still reported a profit. In the current financial climate, things could have been worse.
Playtech Compared to Entain and Inspired
Playtech has at least turned over actual profits of €40.6 million, which is higher than the recent new profits reported by Inspired which came to £20.8 million and Entain’s £32.9 million actual profits.
It does mean Playtech outperformed two of its main rivals in the race profits, but in terms of success, Inspired Entertainment has in fact turned around a 2021 loss of £19.6 million to a £20.8 million profit, so the percentages are in the plus. As for Entain, a 74% decline in actual profits is a similar story to Playtech’s. Once again, much of these iGaming companies’ profits will rely on the UKGC white paper, which shockingly we are still waiting for.
Previous financial reports: Recently I published an all-in-one financial report for Inspired Entertainment (INSE), Entain (ENT), Flutter (FLTR) and Kindred (KIND SDB) giving you the latest for these four gambling companies’ financials.
Playtech 2022 Financial Report Dissected
A positive of this year’s financial figures is that the iGaming giant increased revenues by 33% drawing in €1.6 billion through 2022. That’s 390 million up on the previous 12 months. Not bad at all! The adjusted EBITDA also jumped with an additional €88.5 million to report.
Where the figures sway a bit is profits. The adjusted post-tax profit rose by a healthy 26% (€32.9m) from €127.6m the year before to €160.5m in 2022.
However, overall profits took a 94% hit. In 2021, Playtech reported €686.7 million in 2021, but this is down to just €40.6m according to its publicly released 2022 financial results.
Declining Assets: The reason provided for the €583.2m decline is because of the declining value of derivative financial assets. In 2021 those assets had gained in value, but in 2022 declined. A 94% devaluation is huge though.
Playtech Key 2022 Financial Figures
- +33% Increased revenue – €1.21 billion (2021) to €1.60 billion (2022)
- 28% Adjusted EBITDA – €317.1 million (2021) to €405.6 million (2022)
- +26% Adjusted post-tax profit – €127.6 million (2021) to €160.5 million (2022)
- -94% Actual Profits – €686.7 million (2021) to €40.6 million (2022)
- – €583.2m year-on-year decline in profits
Breaking Down 2022’s Figures – Highlighted area od performance
Playtech has announced a 14% growth in revenue in its B2B division, amounting to €632.4 million, despite the ongoing conflict in Ukraine.
The company has attributed this growth to the rising demand for regulated markets, particularly in Europe and the Americas. Europe recorded a 31% increase in revenue, with contributions from Poland, Spain, and Ireland, while the Americas saw a 27% growth, with the help of Caliente in Mexico and progress in the Brazilian market. Playtech has made significant strides in executing its US strategy, including several notable deals and the launch of the IMS platform with Parx Casino in Pennsylvania.
The company has reported strong cash flow, with an adjusted operating cash flow of €397.0m, and has made progress in executing its strategy, including the successful sale of Finalto.
B2C Growth: Snaitech, Playtech’s B2C operations, also recorded a remarkable 54% increase in revenue, reflecting the reopening of the business’s retail network following its closure in H1 2021 due to the Covid-19 pandemic.
Key 2022 B2B Financials
- +14% B2B growth = €632.4 million of total revenue
- +31% European revenue rise
- +27% Americas revenue growth
- +54% B2C operational growth
Playtech Also Mentions Rising costs
It is a common theme across all financial reports covered so far this year. One of the main issues many companies are reporting are the rising costs of doing business.
Playtech reported a 14% rise in its B2B costs, reaching €472.2m in 2022. Rising operations costs, research and development costs, general and administrative costs, and sales and marketing costs contributed to the increase. However, Playtech’s B2C costs, reported by subsidiary, saw Snaitech’s costs rise by 61%, with Sun Bingo and HappyBet showing minor increases. The organization’s B2B segment saw a 14% YoY growth, with revenues of €632.4 million, while its B2C segment saw a 48% surge in revenues, amounting to €983.1 million. Edison Group’s Neil Shah attributed Playtech’s success to its robust demand in B2B markets and thriving position in the gaming tech sector.
See Playtech’s Stock Performance: Every two weeks we publish an iGaming stocks report, which features Playtech, 888 Holdings, Aristocrat, Light & Wonder, Entain, Inspired Entertainment and Evolution Gaming.
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