London-listed Playtech plc (LSE: PTEC) has announced a trading update for the first four months of 2024, reporting solid trading performance driven by “strong underlying trends”.

However, the company did not provide any specific figures in its brief report, which was released on Wednesday morning.

Playtech's B2B Division Performing Well

Playtech's B2B division showed significant growth in the first four months of 2024. The division's success can be attributed to revenue growth in regulated markets and the benefits of tighter cost control measures. The Americas, particularly the US and Canada, have increased their contribution to the division's growth, while Mexico and Colombia continue to perform well.

“Live continues to capitalize on the rapid expansion of its markets, delivering solid growth during the period, while Casino has also shown strong momentum,” the company commented in its trading update. “The higher margin, less capital intensive SaaS business showed continued momentum with strong revenue growth, additional product launches and new customer signings.”

Looking ahead, the Playtech Board is optimistic about the Company's ability to capitalize on future growth opportunities in both the B2B and B2C segments over the medium term as a result of the strategic changes taking place across the organization.

B2C also provides strong underlying performance

Playtech's B2C division, Snaitech, is delivering good underlying performance, with strong betting performance in both the online and retail betting sectors.

The trading update added: “As industry peers have made clear, strong trading volumes have been partially offset by customer-friendly sporting events in Italy.” “Despite this, we remain well positioned to continue to benefit from the structural shift in Italy towards higher margin online businesses.”

The B2C division made a significant contribution to Playtech's revenue growth, which grew to €1.7 billion in 2023, up 7% from 2022.

Caliplay and board changes update

Caliplay is an important customer for Playtech and has been performing strongly, although Playtech has not yet received the fees it is owed. The two companies are in active discussions to find a mutually beneficial solution and strengthen the partnership.

While Playtech is confident that it has a full understanding of most of Caliplay's revenue streams, obtaining complete financial data from Caliplay has been challenging during the reporting period. As a result, Playtech had to rely on estimates of revenue generated from the complementary B2B services outlined in the agreement. These estimates are based on historical trends and limited information provided by Caliplay.

In addition, Doreen Tan will join the Board as an independent non-executive director on July 9, 2024 and brings a wealth of experience to the Company with a career spanning over 30 years at some of the world's leading financial institutions.