See the Playtech financial results for 2022 – the company is reporting profits and increase revenues, however, total profits year–on-year dropped due to devalued assets. (Image by Dede from Pixabay)
Playtech released its full-year 2022 results on March 23rd and the company posted a rise in annual revenue but suffered a shortfall in profit. Rising costs in operations and other divisions continue to hamper their profit margin and will be a focus for them going forward in 2023.
The company is sticking to its robust strategy of expansion in regulated regions and exiting unregulated territories. Playtech continues to find exceptional partnerships in the industry and invest in research and development of innovative games for the B2C sector. This summary will examine the results and perhaps give some insight as to where PTEC may be headed in 2023.
After announcing their 2022 full-year results a few days ago, the stock decreased almost 3% on the news. The following day, PTEC recovered almost all of its FY result losses (up 2.3%) and is currently trading at 535.86 GBX. Bullish investors sold off the stock on the less-than-ideal FY report but returned to focus on the company’s long-term growth in the coming quarter. Stockholders are concentrating on the company’s sound fundamentals that have seen the share price rise 27% in the last 6 months.
Who is Playtech? On the off chance you are not familiar with this iGaming company, you can find our more about the online casino game developer via the Playtech casino bonus guide. The same page lists all the company awards, its current London Stock Exchange info, and the company’s history.
Breaking Down Playtech Financial Results for 2022
Let’s examine the data in more detail, point out the areas where Playtech fell short, and highlight the positive points. Full-year revenue from all divisions was up 14% to £555.7m. The B2B division was very strong and drove revenue up 33% over last year from £1.06b £1.4b. In the B2C operations, overall revenue was up 48% to £863.6m. The majority of revenue came from its partnership with Snaitech, which saw revenue soar 54% from £513.8m to £790.6m, mainly from the Italian market. This is a huge increase in the retail business, rebounding after the Covid-19 closures of the betting shops.
Playtech has been severely impacted by the rise in costs in all sectors, driving profit down 90% over 2021!! The B2B costs were up 14%, administrative costs up 23%, R & D costs up 12% and sales and marketing up 16.8%. Most notably, its operating expenses increased by 11% to £250.5m. Market analysts are confident that PTEC will get the costs under control and continue to drive growth in H1.
Playtech is displaying resilience in the face of macroeconomic, inflationary, and geopolitical headwinds, but there are other factors that come into play. Playtech is still trying to relocate 700 of its Ukraine staff to safer locations. The Ukrainians account for about 10% of their total workforce and are an integral part of the company. Inflationary issues and major government policies to alleviate these pressures will be forced to deal with going forward.
On the other hand, PTEC’s expansion of regulated markets and signing of key partners will continue to drive growth and revenue. Market analysts are optimistic that PTEC will satisfy its shareholders’ needs while acting responsibly and sustainably.
Playtech Games Company 2022 Financials Recapped
- Revenue (overall) – up 14% to £555.7m over 2021
- B2B – up 33% to £1.4b
- B2C – up 48% to £863.6, the majority coming from Snaitech up 54% to £790.6m
- Adjusted EBITDA – up 28% to £356.5m from 2021
- Adjusted Cashflow – £348.9m
- Profit – down 90% to £35.7m from £686.7m
How have these financial figures affected PTEC Shares?
Not much at all. In our last report covering the Playtech London Stock Exchange prices on 21 March 2023, we reported the PTEC share price was at 536.40 GBX. This was a 42.10 GBX loss over 14 days, but at the time the company was still up on its 2023 market open price of 536.00 GBX.
Today, at the time of this report, the Playtech shares were down to 515.00 GBX with another 3 hours of trading to go. This figure puts the company down on its year opening by just 21.00 GBX. It is not a huge shift in the Playtech stock and certainly not enough to have anyone worried. With global stock markets in a period of uncertainty and contradicting opinions from financial experts who predict doom and gloom is on the horizon, while others say we are in for a financial market upswing, a 21.00 GBX loss is peanuts.
Current iGaming financial concerns: Probably more of a concern in the iGaming market right now is 888 Holdings’ continuing devalued share prices, and to make matters worse, its William Hill brand has just been hit with a £ 19 million fine for multiple AML and social responsibility failures.
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