Playtech is maintaining its optimism regarding growth prospects in Latin America, notwithstanding facing challenges in the region during the first four months of 2025. The company is also advancing with the proposed sale of Happybet, its remaining B2C asset.
Despite this, shares of Playtech were down by 2.55% at 343.50 pence per share in London on Wednesday morning following the company’s recent trading update, released before its annual general meeting later in the day. Playtech typically discloses detailed financial data only for its half-year and full-year results.
Challenges in Latin America for Playtech
The key points in the update included Playtech encountering difficulties in Latin America, notably with Brazil’s transition to a regulated market and Colombia’s introduction of a temporary VAT charge. This has resulted in a 30% drop in the Colombian market’s online GGR since the implementation in February. Playtech, however, remains upbeat about the opportunities in these markets.
In the US, Playtech reported revenue growth across its live, casino, and platform segments. Collaborations with major operators in 2024 such as Bet365, Rush Street Interactive, and Hard Rock Digital contributed to the growth. Playtech highlighted a significant demand for live dealer solutions in the US.
Resolution for Caliplay JV
Furthermore, Playtech mentioned the ongoing growth from the Caliplay joint venture with Caliente. A revised strategic agreement took effect on March 31, with Playtech now receiving dividends as a 30.8% equity holder.
However, Playtech no longer qualifies for additional B2B services fees. This was the primary issue in the dispute with Caliente, but the new agreement, finalized in September last year, marked the end of the conflict.
There were uncertainties regarding Caliplay holding an option to redeem additional services fees from the existing strategic agreement. Playtech stated this option had expired, while Caliplay believed it was still valid.
Initially, Playtech claimed €34.4m in unpaid services and licensing fees for the six months up to June 30, 2022. This amount continued to escalate during the ongoing dispute.
Nonetheless, Caliplay agreed to resume paying software and services fees to Playtech, although these are no longer part of the new deal.
Playtech’s New Direction Post Snaitech Sale
During the four-month period, Playtech transitioned back to a purely B2B business after selling Snaitech to Flutter Entertainment. The transaction concluded on April 30, with Playtech set to receive a total of €2.30 billion ($2.60 billion) in return. The proceeds from the sale will be mainly distributed to shareholders, with Playtech committing to €5.73 per share.
The sale positions Playtech as predominantly B2B-focused. After completing the sale, the company indicated there is significant potential in transitioning to a simplified business model and pursuing B2B growth opportunities.
CEO Mor Weizer expressed that the sale, along with progress in the early months of 2025, positions the company for further expansion.
“Our core B2B business has demonstrated a strong performance in the initial four months of the year, notably in the US market,” Weizer stated.
“Given the strategic and operational advancements across the company, we are confident in Playtech’s capability to capitalize on the promising growth prospects in the medium term.”
Happybet: Playtech’s Sole B2C Asset
Additionally, Playtech provided an update on the sale of the remaining Happybet business. Reports towards the end of 2024 suggested Playtech was preparing to divest the business, which was separated from Snaitech prior to the Flutter sale.
Established in 2017, HappyBet operates an online platform and betting shops in Germany and Austria.
In the update, Playtech mentioned that progress continues to be made on the sale, and further details will be shared in due course.
