If you want a fast overview of how the entire gambling market has done so far in 2020, looking at Playtech’s latest trading update gives a pretty good idea. The company notes a “resilient” H1 2020, with some areas of growth and a few areas that definitely struggled.
Overall, they noted that the company’s online businesses and TradeTech helped keep the engine going, with an Adjusted EBITDA (Earnings before interest, taxes, depreciation, and amortization) of “more than €160 million.” They also note that July was strong, and with some retail locations reopening, they expect a return to normality.
Breaking it down, they note that online casino, live, bingo and poker saw increased play in the first half of the year, although that’s now dropping back down to normal levels. B2B Sports took a hit, and still haven’t recovered to pre-Covid-19 levels.
Snaitech, the company’s Italian facing betting operation, is now starting to recover, with retail outlets reopening as of June 15 and HPYBET is now back in business in Germany and Austria as well. Sun Bingo is noted as a strong performer, but no details are given otherwise.
Playtech also noted its being careful with its money. They specifically point to a share repurchase programme that was paused as the pandemic began, and a choice to go back to their lenders and amend their contracts, considering the current situation. They point to €600 million in liquidity by the end of June.
CEO Mor Weizer commented:
“Thanks to the outstanding response from our people and the early actions taken to protect the business, Playtech has demonstrated outstanding operational resilience during this challenging period.
“In addition to navigating near-term headwinds, we’ve continued to focus on setting up the business for success in the long-term. During the period, we’ve worked hard to add new brands, expand relationships with our existing customers and entered the New Jersey market with our long-standing strategic partner bet365. It is pleasing to see the impacted parts of the business starting to demonstrate positive momentum and I am confident the actions we have taken will help us emerge stronger and cement our market-leading position.”
The company has been doing as much as it can to drop dead weight as the year goes on. We recently learned that they completed their deal to sell FTX Games and Plamee Studios.
But they are still looking ahead to what will definitely work long term. For instance, they won approval in New Jersey to get their online casino products in the state through New Jersey Division of Gaming Enforcement licensed operators.
Playtech will announce its interim results on 17 September 2020