Playtech backs away from Snai sell plans amid strong iGB trading

Playtech will shelve any plans to sell its B2C Snaitech business – at least temporarily – after the company determined its recent success meant it could offer more value by remaining in the group.

Comments on the matter came from Playtech management following the company’s announcement of its first-half results, in which revenue rose 73% year-over-year to 792.3 millions of euros. Snaitech’s turnover practically tripled to reach 446.0 million euros.

The supplier is said to have considered dismantling its activities, including the sale of the Snaitech branch acquired in 2018, after the failure of the plan to sell the entire activity. Playtech’s board approved an offer from land-based slots giant Aristocrat, but shareholders ultimately rejected the deal.

A group called TTB Partners then announced it was considering its own bid and received backing from Playtech chief executive Mor Weizer (pictured). However, in the face of changing market conditions, TTB ultimately declined to submit a bid for the gambling tech giant.

However, group chairman Brian Mattingley said the time did not seem right for Playtech to sell the division, and instead was convinced the best strategy was to continue to allow it to grow.

“Snaitech’s growth means we are under absolutely no pressure to realize the value there, but we will continue to assess that value, and if the time is right, we will consider returning that value to shareholders,” he said. he declares.

“As a board of directors, we are always committed to realizing value. Right now, we don’t think the market is right. The company is in poor health, each division is trading very well.

“We can generate value by simply ensuring that our exchanges continue to grow.”

Managing Director Mor Weizer, meanwhile, said he was confident in Snaitech’s future as the online sector in Italy still had plenty of room to grow.

“There is ample room for higher-margin, less capital-intensive online businesses to grow in the years to come,” he said.

Instead of a sale, Weizer suggested the opposite: that the company could instead make an acquisition on the B2C side to expand further in the region.

“We would consider targeted mergers and acquisitions to grow Snaitech and take advantage of the B2C opportunities we see in the business,” he said.

Weizer noted, however, that this should not be interpreted to mean that the company was looking to buy where possible.

“People shouldn’t think that Playtech is going on an M&A frenzy,” he said. “We use the term targeted mergers and acquisitions. But we are able to seriously consider it at that time. This gives Playtech a lot of strength to consider this in both B2B and B2C.

However, while Snaitech has been a success, Weizer said the same cannot be said for its other B2C brand Happybet. As a result, this brand was placed under the management of Snaitech.

“It’s no secret that Happybet underperformed,” he said. “Having now transferred the business under the management team of Snaitech, we expect to see things change in the future.”

Live Casino Wars

Weizer also spoke about Playtech’s place in the live casino vertical, which he said was an area that continued to grow rapidly and represented major opportunities.

In response to a question about whether Playtech is taking market share from Evolution — comfortably the leader in the live space — Weizer said the company is doing so in regulated markets.

“If you look at it on an apples-to-apples basis, you’ll see Playtech taking market share,” he said. “We have the largest market share in Spain. We are successful in the UK and Italy.

Weizer also spoke of Playtech’s success in Mexico, with Mexican operator Caliente now representing its biggest customer. The model Playtech found in this country — of partnering with the biggest operator in a fast-growing market — was something Weizer said Paytech wanted to repeat.

“The idea is to select a dominant partner in a country and seek to grow in that country as the market develops,” he said. “The results, with incentives aligned, can be dramatic.”