The CEO of Playtech, Mor Weizer, has criticized publicly listed rivals for conducting business in what he referred to as “black markets.” In a recent interview for the Evening Standard, Weizer expressed his frustration with highly valued companies that, despite seeing substantial revenue growth and soaring share prices, operate in countries where online gambling is illegal.
Playtech Stresses Commitment to Regulated Markets Amidst Rivals’ Unregulated Ventures
While Weizer did not name specific competitors, he highlighted that some of them have experienced astronomical growth while reducing their reliance on regulated markets. He emphasized Playtech’s commitment to growing in strictly regulated markets and voiced concern about rivals using funds generated from unregulated markets to penetrate regulated ones. He even mentioned that some operators are present in markets that are on the US sanctions list.
Playtech itself operates in some Asian and Latin American countries where online gambling is unregulated but not explicitly prohibited. However, the company has experienced a decline in revenue from these markets in the first half of the year as it shifts its focus towards countries with fully regulated betting environments.
Weizer emphasized that Playtech’s primary focus is on regulated markets, where they have achieved double-digit growth. He also pointed out that Playtech’s shares trade at a lower multiple than some of their rivals listed outside of London.
Despite concerns about Playtech’s valuation, Weizer commended London investors for their sophistication and understanding of the company’s strategy, particularly regarding its dedication to strictly regulated markets.
Playtech Achieves Impressive 8% Year-on-Year Revenue Surge in H1 2023
Playtech reported robust financial performance in the first half of 2023. The company revealed an 8% year-on-year increase in revenue, amounting to €859.6 million ($919.9 million) during the six-month period ending June 30, 2023. This impressive growth was attributed to the strong performance of Playtech’s B2B division, which includes Snaitech, HAPPYBET, and Sun Bingo, generating €334.5 million ($358 million) in revenues, a 7% uptick from the previous year.
In addition to their B2B success, Playtech experienced notable growth in the Americas, with revenues soaring by 43% to €99.7 million ($106.7 million), primarily driven by their expansion in Caliente and partnerships with multiple operators across various states in the United States.
Despite challenges in certain European markets, Playtech managed to achieve a 5% revenue increase to €96.6 million ($103.3 million) in Europe, excluding the UK. However, in the UK, revenue dropped by 2% to €62.9 million due to proactive affordability checks. Notably, the company’s B2C segment saw remarkable growth, with a 9% increase in revenue to €532 million ($569.5 million), supported by Snaitech’s strong performance in Italy and the pent-up demand following the FIFA World Cup.
Playtech’s CEO, Mor Weizer, expressed optimism about the company’s future, citing expansion plans in the United States, key partnerships, and their strategic agreement with Hard Rock Digital. Weizer also highlighted the resilience of Playtech’s balance sheet, low leverage, and strong cash generation, further bolstering confidence in the company’s prospects.