Playtech share price on the up with Americas expansion planned after revenues double

by Jonathan Adams

The online gambling technology company Playtech has seen its share price gain around 7% over the past couple of days after the announcement of a doubling of first-half revenues. A push into the Americas, with projects in the USA as well as Mexico, Colombia, Costa Rica and Panama in Latin America, has delivered the jump in group revenues that looks set to continue with further growth in the region.

Playtech, the world’s biggest provider of technology to online casinos and other digital gambling businesses, saw its first-half revenues in the Americas rise 106% to €46.4 million. The launch of a Michigan online casino in partnership with Parx Casino in February was one major factor in the income growth, as was growth in the scope of partnerships in Mexico and Colombia and new projects initiated in Costa Rica and Panama.

playtech plc

Playtech provides software for the Bet365 and BetMGM partnership in New Jersey and has new contracts with Scientific Games and Novomatic. The company has announced it has started the application process for licensing in further U.S. states and plans to increase investment in the region

“to take advantage of a strong pipeline of opportunities with potential new customers and existing customers from other markets”.

Central and South America is also seen as a major future growth driver as major markets such as Brazil, where an agreement has already been signed with Galera.Bet, introduce new online gambling regulation that is offering new market opportunities. A Playtech spokesperson said of the move:

“Brazil is anticipated to be a significant market given the large population and its access to the mobile channel.”

Playtech, which also licenses software to physical betting shops, has compensated for drops in revenue in markets like the UK (10%) where lockdown restrictions closed retail outlets for long periods, with strong online sales. New online customers include Sky Vegas and Novibet.

As well as selling its technology to online casinos and sports betting brands, Playtech also runs its own brands. Its Snaitech business in Italy has been a bright spot with chief executive Mor Weizer telling investors it has been

“cementing its position as the No 1 retail and online sports betting brand in Italy”.

Weizer delivered an upbeat assessment of the group’s immediate prospects with the statement:

“Given the strong first-half performance, the momentum in the business and the easing of lockdown restrictions, we are confident of Playtech’s prospects for the remainder of 2021 and beyond.”

This article is for information purposes only.
Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.
There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

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