Playtech Projects Profit Above Estimates as Americas Drive Growth
Mor Weizer CEO of Playtech
Playtech projects 2026 adjusted core profit well above analyst expectations, driven by exceptional performance in the Americas. The gaming technology company expects full-year adjusted EBITDA of at least €270 million, surpassing the €219 million analyst consensus, the company announced on Thursday. For the first half of 2026, Playtech anticipates adjusted EBITDA exceeding €155 million, representing a 70% year-over-year increase. The strong financial outlook, specifically fueled by the company’s partnership with Hard Rock Digital in the US and continued momentum in Mexico and Colombia, has triggered a Playtech shares boost. Chief Executive Mor Weizer attributed the results to exceptionally strong US performance. The company now faces the challenge of maintaining this growth trajectory through the second half of the year.
Playtech Shares Boost Following Strong Financial Projections
The gaming technology firm delivered adjusted EBITDA of €91.6 million for the first half of 2025, meeting upgraded expectations announced in an August trading statement. Full-year 2025 performance tracked ahead of market forecasts, positioning Playtech to exceed analyst estimates. The company reported total revenue of €764 million for 2025, with adjusted EBITDA reaching €197 million.
Reported profit after tax surged to €1,575.7 million in H1 2025 from €5.9 million in the same period of 2024, primarily owing to the recognition of €1,613.1 million profit from the Snaitech disposal. Revenue for the six months to June 30 stood at €387 million, representing a 10% decline year-over-year.
CEO Mor Weizer stated the results demonstrate Playtech’s successful transition back to its roots as a predominantly pure-play B2B business. He expressed satisfaction with earnings exceeding earlier expectations, reflecting strong performance across key markets. The company’s balance sheet strength enables increased investment in the US and Brazil during the second half to sustain growth momentum.
Playtech maintains confidence in achieving medium-term targets of €250 million to €300 million for adjusted EBITDA and €70 million to €100 million of free cash flow.
How Did Americas Fuel Playtech’s Growth?
The strategic partnership with Hard Rock Digital emerged as the primary catalyst, with Playtech investing £67.5 million for a low single-digit minority equity stake. Hard Rock Digital has become one of Playtech’s largest customers following the successful launch of the Past Motor Racing (PMR) sports-betting product in Florida during Q4 2025. Playtech benefitted materially from being first to market with this innovative product based on historical motor racing results.
First half earnings accelerated through May and June, driven by the US and continued strength in Mexico and Colombia. US revenue grew approximately 100% in the first half, while revenue across the US and Canada increased 71% year-over-year at constant currency. Performance came from strong activity with DraftKings, FanDuel, Hard Rock Digital, and Delaware North.
In Mexico, Playtech’s 30.8% equity stake in Caliente Interactive generated €54.5 million in income from associates during 2025. Correspondingly, Caliente Interactive distributed dividends totalling €45.7 million before tax relating to nine months in FY25.
Colombia presented challenges with a 19% VAT on online gambling deposits introduced in February 2025 affecting software licensing revenues. Elsewhere, Brazil’s national licensing regime launched January 1, 2025 generated approximately £7.47 billion in GGR during the first year. Playtech’s structured agreement with GaleraBet positions the company for growth as this market stabilizes.
What Challenges Lie Ahead for Second-Half Performance?
UK gambling tax increases present a substantial headwind for Playtech in 2026, with remote gaming duty rising from 21% to 40% from April 2026. The company expects the tax hikes to reduce adjusted EBITDA by high-teens millions of euros before implementing any countermeasures. Notwithstanding this regulatory pressure, Playtech anticipates better-than-expected income contributions from its associates.
Regional challenges extend beyond taxation, particularly in Latin America. Playtech plans to increase investment in the US and Brazil during the second half of 2025 while remaining mindful of headwinds in Brazil and Colombia. The Colombian market faces ongoing adjustments following the 19% VAT introduction, whereas Brazil’s newly regulated environment continues to evolve after its January 2025 licensing regime launch.
The Hard Rock Digital partnership positions Playtech for sustained growth, with contribution to B2B revenues expected to increase in FY2024 and thereafter as Hard Rock Digital expands market penetration. In particular, the partnership advances Playtech’s position in North America as additional markets come online.
Mor Weizer, CEO, said: “We achieved an excellent performance in the first half of 2026, reflecting continued momentum in regulated markets, notably the Americas and certain European markets. Performance in the US, driven by our partnership with Hard Rock Digital, has been exceptionally strong, and we are delighted to see returns on our investments over recent years accelerate and contribute significantly to profitability and cash flow.
Playtech continues to further establish itself in regulated and regulating markets going into the second half of the year, and we are pleased with the progress towards our medium-term targets. We look forward to publishing our interim results in a few weeks.”
