Playtech Reports €1.07 billion in Revenues for 2020, Down 25% YoY

Playtech plc (LON: PTEC), a leading software provider in the financial service industry, reported its financial results for the year 2020. The revenue came in at €1.07 billion, 25% lower than 2019.

The COVID-19 has heavily impacted on the sports and gambling business, and aggressive international expansion of the group company increased expenses. 

In 2020 earlier, the revenue numbers for the company were pretty good. Playtech's adjusted EBITDA, including the business from its subsidiary arm Finalto, remained at €310 million, which was higher than the projected €300 million.

Finalto, previously known as TradeTech, contributed most revenue to Playtech. The revenue of Finalto in 2020 reached €121.9 million, 80% higher than 2019. The adjusted EBITDA of this arm skyrocketed 623% to €56.4 million.

As Fazzaco reported earlier, Playtech is now in negotiations to sell Finalto with an initial bid between $200 to $250 million.

The negotiations has forced Playtech to give attention to its key gambling business. Playtech is now in aggressive expansions to B2B gambling business, especially in US and Latin America. However, these expansions has heavily increased the expenses of the group company.