The time is not right for the company to sell its Snaitech division, according to Snaitech’s Chairman Brian Mattingley. The growth of Snaitech means we’re under no pressure to realise the value there, but if the time is right, we’d look at returning that value to shareholders.
The business announcing its H1 results, in which revenue was up 73% year-on-year, received comments from the leadership of the business. Snaitech’s revenue almost tripled to 446.0m.
After plans to sell the entire business fell through, the supplier was considering a break-up of its business, including a sale of the Snaitech arm it acquired. The board of directors of the company approved an offer from the company, but the shareholders rejected it.
TTB Partners received support from Mor Weizer, the chief executive of Playtech, after they announced that they were considering a bid of their own. TTB declined to submit a bid for the gambling technology giant because of changing market conditions.
Brian Mattingley, chairman of the group, said that the time was not right for the division to be sold, and that he was confident that the best strategy was to continue to allow it to grow.
The growth of Snaitech means we are under no pressure to realise the value there, but if the time is right then we would look at returning that value to shareholders.
The board is still committed to realising value. We do not think the market is right at the moment. Every division is doing well and the company is in rude health.
Ensuring our trading continues growing is what we can return value for.
Mor Weizer said that he was confident in the future of Snaitech because the online sector in Italy still had plenty of room to grow.
He said that there is plenty of room for the higher-margin, less capital-intensive online business to grow.
Weizer suggested that the business might make an acquisition on the B2C side in order to grow further in the area.
He said that they would consider targeted M&A to expand Snaitech and leverage the B2C opportunities in the business.
Weizer said that this should not be taken to mean that the business was looking to buy wherever possible.
He said that people shouldn’t think that the company is going on an acquisition spree. We use the term targeted M&A, but we are in a good position to seriously consider it at that time. In both B2B and B2C, it gives Playtech a lot of strength to consider that.
Weizer said that its other B2C brand, Happybet, was not as successful as Snaitech was. This brand has been brought under the management of Snaitech.
He said that Happybet has been performing poorly. We expect to see a change going forward now that the business is under the Snaitech management team.
The live casino wars are happening
Weizer noted that the live casino vertical was an area that was continuing to grow quickly and represented major opportunities.
Weizer stated that the business was taking market share from Evolution in regulated markets.
He said that if you looked at it on an apples-to-apples basis, you would see that the company was taking market share. In Spain, we have the largest market share. We have been successful in the UK and Italy.
Weizer talked about the success of Playtech in Mexico, with Mexican operator Caliente now representing its largest customer. Weizer said Paytech wanted to repeat the model Playtech found in this country, which was partnering with the biggest operator in a fast-growing market.
He said that the idea was to pick a dominant partner in a country and look to grow in that country as the market grows. The results, with aligned incentives, can be spectacular.