Playtech’s strong performance in the first half of 2020 has been a testament to the organisation’s dynamic management and growth acceleration in its online casino vertical. An adaptive organizational approach allowed the company to secure the preservation of its cash flow and allowed it to boost liquidity in a time of profound adversity for the casino industry. The year’s challenges have resulted in an adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) for the business of €160 million or approximately $189 million for the first half of the year.
Management matters
Despite the hard-knock that Playtech’s B2B sector took due to the suspension of live sporting events and the shuttering of casinos and retail outlets in response to the global health crisis, the brand maintains a positive outlook for the remainder of the year. The organization credits this success to increased market volatility and a subsequent uptick in trading which yielded a positive outcome for its TradeTech division coupled with an upswing in its online business. Playtech’s Bingo, Poker, and online casino operations all experienced growth in the first half of the year.
The winds of fortune are only a small component in the business’ overall positive performance, with its management strategy being hailed as the keystone of its success. The company’s dynamic response allowed it to effect changes to maximize its available liquidity to over €600 million. This profound reaction included a flurry of early-response measures designed to protect the business, including holding on to shareholder distributions from 2019, which netted the brand €65 million in cash.
The unbanning of live sports and the re-opening of a large percentage of the company’s land-based and retail operations spurred on its positive performance for 2020.
Hope on the horizon
The continued success of Playtech, considering its position as an online casino software supplier industry leader, is indicative of a future positive change of fortunes for the entire industry. The company was originally based in Estonia, eventually moving to the Isle of Man and celebrated its 20th anniversary in 2019.
The brand’s primary offering is turnkey online casino and sports betting solutions for the iGaming sector, and it is a leading force in this global market. The company’s turnover exceeds €1.5 billion over its 20-year existence and its operations include subsidiaries like TradeTech Alpha Limited, Quickspin, and YoYo Games.
Playtech, not satisfied with just being resilient, plans on cultivating existing relationships and simultaneously growing its player offering. In the first half of 2020, the company launched in the New Jersey market, in conjunction with long-time partner Bet365.
