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Playtech PLC on Monday said it expects full-year adjusted earnings to be slightly ahead of expectations after a strong first half. The platform, content and services provider to the online gambling industry said pretax profit was €93.5 million in the six months to June 30, up 17% from €79.6 million a year prior. Revenue climbed 5.5% to €906.8 million €859.6 million, while basic earnings per share improved to 3.3 euro cents compared with 1.0 cents. Earnings before interest, tax, depreciation and amortisation rose 13% to €233.6 million from €207.3 million driven by strong performance across the business-to-business operation. Revenue in the B2B unit rose 14% to €382.2 million from €334.5 million a year before. Playtech said high operating leverage and a focus on cost control meant B2B adjusted Ebitda increased by 38% to €112.3 million from €81.3 million, with adjusted Ebitda margins up 510 basis points. The firm highlighted continued strength within the Americas region, with revenue growth of 42% to €141.6 million from €99.7 million. ‘Caliplay remains the key driver of growth, with increasing contributions from Wplay in Colombia, NorthStar in Canada and Parx in the US. Brazil continues to grow very strongly as it moves towards regulating,’ the company stated. Revenue within the business-to-consumer division was flat at €532.4 million, compared with 532.1 million. Adjusted Ebitda declined by 5.7% to €130.7 million from €138.6 million. At the Italian betting firm Snaitech, which is being sold to Paddy Power owner Flutter Entertainment PLC, revenue declined by 1.0% to €483.6 million from €488.4 million. Using proceeds from this sale, Playtech intends to return €1.70 to €1.80 billion to shareholders by way of a special dividend and repay the outstanding amount on the bond due March 2026 of around €350 million. Looking ahead, Playtech reported a ‘solid’ start to the second half and said it was on track to deliver full-year adjusted Ebitda slightly ahead of expectations. The firm added it was on course to be within its B2B adjusted Ebitda medium-term target range of €200 million to €250 million in full-year 2024, earlier than anticipated. Chief Executive Mor Weizer said: ‘With a clear strategy, a strong balance sheet and a great team behind us, we remain very confident in Playtech’s future prospects.’ Shares in Playtech were down 1.5% to 748.00 pence each in London on Monday. Copyright 2024 Alliance News Ltd. All Rights reserved.
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