Playtech PLC (PYTCF) Q4 2024 Earnings Call Transcript

2025-03-27 13:26:06 ET

Playtech PLC (PYTCF)

Q4 2024 Results Conference Call

March 27, 2025 05:00 AM ET

Company Participants

Moran Weizer - Chief Executive Officer

Chris McGinnis - Chief Financial Officer

Conference Call Participants

Roberta Ciaccia - Investec

Ivor Jones - Peel Hunt

Richard Stuber - Deutsche Numis

Ed Young - Morgan Stanley

Mark Watts - Citibank

Presentation

Moran Weizer

So good morning, everyone. Firstly, I want to thank you all for attending today. It's been an exciting year for Playtech, and I'm looking forward to taking you through our performance and our plans for the future.

On to Slide 2. I'll begin with the highlights before handing over to Chris McGinnis, our CFO, who will take you through the financials and the outlook. I will then update you on our progress against our strategic priorities and our medium-term plan.

Turning now to Slide 3. I'm pleased to report a strong financial performance in 2024, delivering adjusted EBITDA of €480 million, up 11% year-on-year and slightly ahead of previously raised expectations. This excellent performance was driven by strong momentum in the B2B division, which showed broad-based growth across our core markets and improvements in operating leverage. As a result, we grew B2B adjusted EBITDA by 22% to €222 million, achieving our medium-term adjusted EBITDA target ahead of schedule, while also significantly improving our free cash flow generation.

As announced last September, we signed two landmark agreements that will fundamentally transform the future of the group. Firstly, we agreed the sale of Snaitech to Flutter for a total enterprise value of €2.3 billion, and we are currently awaiting approval from the Italian regulator with completion still expected in Q2 2025. As previously stated, we anticipate paying a special dividend to shareholders of between €1.7 billion and €1.8 billion upon completion of the deal.

I want to take this opportunity to thank Fabio and the entire Snai team for their commitment, achievements and all their contributions to the group's success since joining the Playtech family in 2018. Under Fabio's leadership, Snai has grown and transformed to become a leading integrated online and retail brand.

Secondly, we finalized the revised terms of our strategic agreement with Caliplay. We have now received approval from the Mexican antitrust authorities, and the deal is due to close on 31st March 2025. Having reached our previous B2B target, we are setting a new medium-term adjusted EBITDA target for continuing operations of €250 million to €300 million, reflecting the impact of the new Caliplay agreement....

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