Playtech, recognised as the ‘old boy of igaming’, grabbed headlines following positive commercial developments and strong H1 interim results, assuring investors it is on track to meet its 2024 EBITDA targets.

On the latest episode of iGaming Daily, Viktor Kayed, Senior Journalist for SBC News, was joined by SBC’s Content director, Ted Menmuir, to delve deeper into the latest developments for the LSE gambling group.

Playtech’s commercial outlook was strengthened by the resolution of its revised technology and services agreement with Mexican joint venture Caliplay, and Ted explained that Playtech will now hold a 30% equity in the joint venture. It has also been promised to receive €150m in settlement of service fees from Caliplay. 

The Americas region delivered a 42% increase in revenue for Playtech and, according to Ted, this will continue to be an area of focus for the company.

He said: “Playtech has eyed the North American market for a number of years but its strategy has been somewhat conservative. I think in terms of its valuation and the retaking of its B2B spot, the Americas is key.

“It knows that it is the market where it’s likely to get its next set of tier-one operators and its most lucrative contracts. I think it wants to become the number one platform provider for that region and I think it will view each market individually, whether it’s Colombia, Mexico or Brazil.”

Playtech also maintained its pledge to return approximately €1.8bn to shareholders by agreeing to the sale of Snaitech Italia to Flutter Entertainment in a deal worth €2.3bn.

Snaitech is Italy’s third-largest online gambling operator and Ted described the Italian operator as an “incredible investment” for Playtech, despite many questioning why the firm had acquired a B2C unit. 

On the deal, Ted said: “Having analysed the Italian market for a number of years, Playtech is divesting Snaitech at the right moment as Italian gambling undertakes its generational reorganisation.

“Snaitech did take market share under Playtech’s ownership and in comparison to the company’s other investments during that period of the 2000s, it performed much better. Playtech sells Snaitech at a premium from an investment of €300m which is an incredible return, and best of all it has been able to reward its shareholders.”

Looking ahead to the future, the duo ended the show by considering whether these results mark the dawn of a new and more sensible Playtech. 

“I don’t mind the drama for Playtech. From a journalistic response, I love a mad company to write about and I love a company that takes risks,” said Ted.

“Playtech haven’t really been that conservative and I hope they keep it that way. I think if they undertake an aggressive market strategy in North and South America they will be one to watch. I won’t be surprised if they undertake strategic M&A in those markets to improve their overall service.”