Playtech PLC reported a drop in first-half earnings and revenue, reflecting its strategic pivot to a business-to-business model following the sale of its Italian consumer-facing unit, Snaitech.
The gambling technology company said adjusted earnings before interest, taxes, depreciation, and amortization from continuing operations fell 16% to 91.6 million euros for the six months ended June 30.
Revenue declined 10% to 387.0 million euros, which the company attributed primarily to a revised agreement with its partner in Mexico, Caliente Interactive, that shifted its earnings from service fees to a 30.8% equity stake.
Excluding the impact of the new arrangement, underlying B2B revenue and adjusted EBITDA both grew 3%, driven by strong performance in the Americas where revenue surged 64%, according to the company.
The sale of Snaitech for approximately 2.3 billion euros allowed Playtech to return about 1.8 billion euros to shareholders and left it with a net cash position of 77.1 million euros.
"These results show the strong start Playtech is making in its transition back to its roots as a predominantly pure-play B2B business," said Chief Executive Mor Weizer.
The company said it is on track to deliver full-year adjusted EBITDA ahead of current expectations.
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