Playtech reaches Caliplay agreement amid H1 update

Playtech CEO Mor Weizer said he is looking forward to an “exciting new chapter” between his company and Caliplay after a new strategic agreement was found. Mexican brand Caliente launched legal proceedings against Playtech in October last year, seeking to annul the partnership.

Playtech and Caliente filed respective lawsuits, citing issues over contract breaches as to the structure of the Caliplay joint venture.

On Monday, however, the amended terms revealed that Playtech will hold a 30.8 per cent equity interest in Caliente Interactive, which will be the new holding company of Caliplay, incorporated in the US.

Playtech has entered into an eight-year B2B software licence and services agreement to supply Caliente. And Playtech will receive an additional US$140m from Cali Interactive, paid in cash over a four-year period.

Playtech also publicly noted its issues with missing payments from Caliplay but said on Monday that the money is now being paid.

“In addition, Caliplay has resumed paying the Playtech Group its software and services fees with more than €150m (amounting to more than 80 per cent) of the unpaid fees due from Caliplay to the group having now been received,” – Playtech said.

“The balance has been paid into escrow and is to be released either on the closing of the revised arrangements (expected in Q1 2025) or by the end of 2025 at the latest.”

The revised agreements are conditional upon Mexican antitrust approval and closing is expected to take place in Q1 next year. There is an agreed standstill of all current legal proceedings between Caliente, Caliplay and Playtech, and those proceedings will be dismissed in full once the revised arrangements come into effect.

Weizer said:

“During the past nine years, we have worked closely with Caliplay to create a successful and rapidly growing digital business in Mexico. The revised arrangements mark the beginning of an exciting new chapter that will build on the impressive progress to date, with a view to driving significant further growth for Cali Interactive in the future.

“The agreement with Caliente and Caliplay underlines the attractiveness of Playtech’s leading proprietary technology.

“With a strong position in Mexico and exposure to other fast-growing markets in the Americas and Europe, we remain well-placed to deliver strong growth in our B2B business in the coming years.”

Caliplay chairman Emilio Hank said:

“We are delighted to finalise this renewed agreement which shows the inherent strength of the strategic relationship between Caliplay and Playtech.

“We are focused on growing Caliplay, leveraging our core strengths and Playtech’s leading technology to broaden our geographical footprint, as we continue in our mission to give the best gaming experiences to our customers in Mexico and beyond.”

The agreement with Caliplay came as Playtech teed up the release of its half-year results by revealing 2024 adjusted EBITDA is expected to be “slightly ahead of current consensus expectations, mainly driven by a strong performance within the B2B division.”

A combination of revenue growth in the Americas and a focus on tighter cost control helped Playtech’s B2B division, while “good strategic progress” continues to be made in the US and Canada.

These markets delivered “very strong growth, albeit from a small base.” There was also a “growing contribution” from Colombia, Playtech said.

“Snaitech continues to see underlying growth in wagers against a tough comparative while being negatively impacted by customer-friendly sporting results in Italy, particularly at the start of the year,” – the company added.

“Discussions continue” around a potential sale of Snaitech to Flutter Entertainment.

Source: intergameonline.com

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