Playtech Plc, the British gambling technology giant, has announced that it expects its adjusted core profit for 2024 to surpass market forecasts, buoyed by strong growth in its business-to-business (B2B) division.
The London-listed firm attributed this performance to its expanding footprint in the Americas and a concerted effort to tighten cost controls.
In a statement, Playtech revealed that its B2B division experienced notable revenue growth during the first half of 2024, specifically in the Americas. For the six months ending 30 June, the company reported robust demand for its gaming and betting solutions across the continent, a key region that has seen significant investment from the firm in recent years. Playtech’s success in the Americas is part of a broader strategic focus aimed at capitalising on the rapidly growing online gambling market in both North and South America, as regulation in the sector continues to evolve.
As a technology provider for many of the world’s leading gambling operators, Playtech’s B2B operations include the development of gaming software, platforms, and services. The company has been actively strengthening its position within this market, especially in territories where online gambling is gaining legalisation momentum. The firm’s latest performance is a testament to this ongoing focus, underpinned by what the company describes as “tighter cost controls,” which have helped to enhance profitability despite increased competition in the sector.
In a separate announcement, Playtech disclosed a strategic agreement with Mexican sports betting company Caliente Interactive’s subsidiary, Caliplay. Under the terms of the deal, Playtech will acquire a 30.8% equity stake in Caliente, further extending its influence in the Latin American betting market. This move is seen as a key part of Playtech’s ongoing efforts to expand its presence in high-growth regions, particularly in Latin America, where online sports betting has been gaining significant traction.
As part of the agreement, Playtech will secure the right to appoint a director to Caliplay’s board, a move that strengthens its strategic oversight and influence within the company. Furthermore, the deal includes a revised eight-year B2B software licence and services agreement between the two firms, allowing Playtech to provide Caliplay with its cutting-edge gaming software and services. This extended partnership is expected to drive further synergies and cement Playtech’s role as a critical technology partner for Caliplay as it continues to grow its business in Mexico and beyond.
The deal with Caliplay reflects Playtech’s broader strategy of forging long-term partnerships with local market leaders in regulated markets around the globe. By leveraging these relationships, Playtech has been able to position itself as a leader in the global online gambling industry, providing software solutions to operators in various regions while maintaining a flexible and scalable business model.
Playtech’s statement, along with the announcement of its Caliplay partnership, has sparked optimism among analysts and investors, with expectations that the firm’s international expansion will continue to yield strong returns. The company has not yet provided detailed guidance on how much ahead of market expectations its 2024 profits will be, but with these latest developments, Playtech appears poised for further growth in the year ahead.
Shares in Playtech were up slightly following the news, reflecting investor confidence in the company’s prospects amid a period of rapid international growth and innovation in the gambling technology sector.
