Last year was a good year for Playtech in terms of financial performance. Revenues increased by 12% to €1.2bn, and adjusted EBITDA rose by 25% to €317.1m. Both the B2B and B2C operations of the company showed decent results. The Italian retail and online betting and gaming business Snaitech had a strong rebound after the pandemic. The online sector performed exceptionally well, with a 45% increase in revenues to €229.9m, compensating for the impact of forced retail closures. The B2B business also experienced growth, with revenues rising by 11% to €554.3m, primarily driven by the booming Americas segment where revenues grew by 64% to €101.3m, largely due to the success of the Caliente strategic partnership.
However, the focus in the past year has always been on the corporate activities surrounding Playtech. CEO Mor Weizer is now part of a potential bid consortium led by TTB Partners, an investment firm based in Hong Kong. The bid aims to conclude one of the most complicated and long-winded takeover attempts in the online gaming sector. The saga involved an initial approach from Aristocrat, a failed bid from JKO Partners led by Eddie Jordan, intervention from an Asian-based shareholder group, and eventually the TTB approach. It is expected that the final outcome will be reached in the coming weeks, marking the end of Playtech’s life as a listed company.
Playtech’s journey as a listed company dates back to its formation by Teddy Sagi during the early stages of the online age. Initially listed on London’s Alternative Investment Market (AIM) in 2006, the company progressed to the main list of the London Stock Exchange (LSE) in 2012. While CEO Mor Weizer took over in 2007, much of the attention was still focused on Sagi and his shareholding, which was eventually resolved in late 2018. After the departure of Sagi, the company faced another round of drama when Aristocrat emerged as a bidder last year. The involvement of Weizer in the TTB effort initially suggested that Playtech would become a private entity, but the current indications from insiders and sources suggest that the company will remain listed, with a significant portion of shares held by the consortium of investors assembled by TTB.
The decision to remain listed rather than going private is attributed to the attractive opportunities in the US rather than Asia, which was previously speculated. The potential investors see the US market as holding immense potential for igaming, even though the legislative rollout has faced delays. Playtech’s listing status is seen as a valuable asset that provides credibility with US regulators and should not be relinquished in the takeover process. Therefore, the recent annual results should be viewed as the start of a new phase in Playtech’s corporate life rather than its swansong as a listed entity. The continuity of Mor Weizer’s leadership is also seen as reassuring for those closely following the company.
Source: Scott Longley, journalist
