Playtech, a famous developer of gambling software, has kicked off 2022 with excellent financial results as demonstrated by its Q1 results. The company’s continued success has attracted the gaze of the investor firm TTB Partners.
Playtech’s Business Flourishes
Playtech’s results for the first three months of 2022 were strong and demonstrated a drastic EBITDA growth. The company’s adjusted EBITDA sat at $105 million – a number that is almost as high as the company’s adjusted EBITDA for the first six months of 2021 ($130 million).
The reason for this dramatic revenue increase is Playtech’s successful business-to-business and business-to-customer operations. The company has managed to expand its footprint in North America by inking partnerships in Ontario’s fresh betting market, as well as by doubling down on its business in the United States. Mexico has also been a great source of income thanks to Caliplay, Playtech’s collaboration with the local brand Caliente.
Playtech’s operations in other markets have also performed favorably, sparking excitement for the company’s future. The company said that the excellent start has boosted the board’s confidence. Playtech now expects to reap even more successes throughout the remainder of the year. Mor Weizer, chief executive of Playtech, added:
Our full-year results demonstrate the quality of Playtech’s technology and the momentum across the group. Our strong performance is underpinned by our B2B business, in particular the tremendous growth we have seen in the Americas.
Mor Weizer, CEO of Playtech
TTB Continues Takeover Talks
With Playtech’s business flourishing, TTB Partners has taken interest in acquiring the company. TTB is already the biggest Playtech shareholder and is now considering a full takeover. The investor firm started discussions about this move in February.
TTB began eyeing a Playtech takeover bid shortly after the latter turned down a $3.33 billion offer by the Australian giant Aristocrat. Weizer later confirmed that he and Thomas Hall, former Playtech director, are participating in the negotiations with TTB.
Playtech and TTB have now announced that those negotiations have seen “positive progress” although the deal’s future remains uncertain. Playtech added that as of now, there is no certainty if and when an offer will be announced and what its terms might be.
Playtech’s business might be at its peak right now but the company remains wary of the war in Ukraine and the effects it might have on its operations. Despite the concerns, the company continues to push forward, expand its business and improve its team and products.