Playtech posts strong first quarter, as takeover discussions progress

(Alliance News) - Playtech PLC said on Thursday that 2022 started strongly, but it is cautious about the macroeconomic picture for the full year, as discussions for a potential takeover offer continue.

The FTSE 250-listed gambling software firm said 2022 was off to an "excellent" start, as adjusted earnings before interest, tax, depreciation and amortisation came in at EUR100 million in the first quarter.

The positive run rate has continued through April, it said.

The performance was driven by both its business-to-business and business-to-consumer businesses, Playtech said. Positive trends from the second half have continued for its Italian business Snaitech, as online business grew, retail recovered and sports results were favourable.

B2B performance has been led by a strong performance in the Americas, specifically Caliplay in Mexico. Playtech also has signed several new customers in the US and launched partnerships in Canada.

Shares in Playtech were up 4.1% to 536.00 pence each in London late on Thursday morning.

The gambling firm also updated on the prospective takeover offer from Hong Kong finance firm TTB Partners Ltd's investor group, saying "positive progress" has been made in discussions about an offer, but there is no certainty one will be made.

TTB expressed interest in making an all-cash offer for Playtech back in February, after Playtech shareholders voted down an offer from Australia's Aristocrat Leisure Ltd.

Playtech continues to explore a "possible transaction" which would allow Caliplay to enter the US market on an "accelerated basis". It also said the disposal of its financial trading arm Finalto to Gopher Investments was on track to complete in the second quarter.

Although the strong start has provided Playtech with confidence for 2022, it sounded a note of caution given the volatility of the macro backdrop, citing Covid and the Ukraine war as injecting a level of uncertainty.

"The board is also conscious there cannot be any certainty that the strength across the business so far will be repeated throughout the remainder of the year. That said, the company's performance to date and current trends in the business positions the company very well," Playtech said.

By Elizabeth Winter; elizabethwinter@alliancenews.com

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