Playtech upgrades full-year profit expectations

Gambling software maker Playtech upgraded its full-year core profit expectations on Wednesday following continued strong trading, but cautioned that current growth rates are set to moderate somewhat later in the year.

In an update for the period from 1 January to the end of April, the company said its performance has been driven by Snaitech and Caliente and has been "consistent with the structural growth drivers within the industry".

"Although current growth rates are expected to moderate somewhat later in the year as a result of certain tailwinds in Q1, the board now expects 2023 adjusted EBITDA to be slightly ahead of current consensus expectations," it said.

Playtech said its B2B division performed "very well" throughout the first four months of the year, driven by regulated markets.

The B2C segment also continues to perform "very well", driven by Snaitech. Playtech said the resumption of football after the World Cup, along with pent-up demand provided a tailwind at the start of the year, with the retail segment in particular seeing very strong growth. The online business also continued to see good growth.

Chief executive Mor Weizer said: "I am delighted to report that our strong start to the year has continued, with growth across both the B2B and B2C divisions. Our strategy of focusing on regulated or soon-to-be regulated markets, combined with Snaitech's impressive performance in Italy, means we remain well-positioned to make further progress and capitalise on the significant growth opportunities ahead."