Mr Viral
Market regulation in Brazil and new VAT charges in Colombia have impacted Playtec’s LatAm performance although it remains bullish on the region.
Playtech remains confident on growth prospects in Latin America despite experiencing headwinds across the region in the first four months of 2025. The group also continues to make progress on its proposed sale of Happybet, its remaining B2C asset.
However, shares were trading down 2.55% at 343.50 pence per share in London on Wednesday morning following the company’s trading update, which it released ahead of its annual general meeting later in the day. Playtech only publishes in-depth data on financial performance for its half-year and full-year results.
Brazil regulation and Colombia VAT hit Playtech
Perhaps most notable in the update was Playtech’s challenges in Latin America. In particular, it highlighted Brazil’s transition to a regulated market and Colombia introducing a temporary VAT charge, which has led to a 30% decline in the Colombian market’s online GGR since its implemention in February. Playtech remains positive about opportunities in these markets, however.
In the US, Playtech reported revenue growth across its live, casino and platform segments. Launches with major operators in 2024, including Bet365, Rush Street Interactive and Hard Rock Digital, aided growth. Playtech highlighted particularly high demand for live dealer solutions in the US.
Peace at last for Caliplay JV
Aside from this, Playtech referenced ongoing growth from the Caliplay joint venture with Caliente. A revised strategic agreement came into effect on 31 March, with Playtech now receiving dividends as a 30.8% equity holder.
However, Playtech is no longer entitled to receive the additional B2B services fees. This was the main sticking point in the dispute with Caliente, but the new agreement, struck in September last year, marked the end of the saga.
There were uncertainties over Caliplay holding an option to redeem additional services fees from the existing strategic agreement. Playtech said this option had expired, whereas Caliplay believed it was still valid.
Initially, Playtech said it was owed €34.4m in unpaid services and licensing fees for the six months to 30 June 2022. This amount continued to increase while the dispute remained ongoing.
However, Caliplay agreed to resume paying software and services fees to Playtech, although these are no longer present in the new deal.
New-look Playtech moves forward after Snaitech sale
During the four-month period, Playtech pivoted back to a purely B2B business after completing the sale of Snaitech to Flutter Entertainment. The deal closed on 30 April, with Playtech to receive a total of €2.30 billion ($2.60 billion) in return. Proceeds from the sale will largely be distributed to shareholders, with Playtech pledging €5.73 per share.
Playtech CEO Mor Weizer says a renewed B2B focus, particularly growth in the US, sets the business up for sustained growth
The deal positions Playtech as almost entirely B2B-focused. Upon completing the sale, the group said there is “significant further upside” to switching to a simplified business model and pursuing B2B growth opportunities.
CEO Mor Weizer said the sale, coupled with progress during the early months of 2025, positions the business for further growth.
“Our core B2B business has delivered a solid performance in the first four months of the year, with a standout performance in the US,” Weizer said.
“Given the strategic and operational progress being made across the business, we remain confident in Playtech’s ability to execute on the exciting growth opportunities over the medium term.”
Happybet is last B2C asset at Playtech
Playtech also took the opportunity to issue an update on the sale of the remaining Happybet business. Reports towards the end of 2024 said Playtech was preparing to sell the business, which was split out of Snaitech ahead of the Flutter sale.
Founded in 2017, HappyBet operates an online offering and betting shops across Germany and Austria.
In the update, Playtech said it continued to make progress on the sale and will provide an update in due course.
