Playtech lauds ‘step change’ outcome of €113m (£97m) profits in H1 trading on exceptional US and Latin America execution of commercial partnerships
Playtech Plc has reaffirmed its confidence in meeting all full-year 2026 financial and corporate objectives, as strong H1 trading saw the LSE-listed gambling technology group return to bottom-line profitability.
Corporate accounts for H1 2026 saw Playtech achieve growth across all core metrics as group revenues stood at €425m, up 10% on 2025 comparatives of €387m.
Commercial activities across North and Latin America were identified as Playtech’s principal growth drivers. Revenue from the US and Canada rose by 161% to €57m, while Latin American revenue increased by 14% to €100m, equivalent to 29% growth on a “consistent underlying basis”.
US growth was underlined by Playtech expanding its iGaming and live casino content with market-leading operators FanDuel, Fanatics, bet365 and DraftKings across New Jersey, Michigan, Pennsylvania, West Virginia, Delaware and Connecticut.
The period also delivered further returns from Playtech’s partnership and minority investment in Hard Rock Digital. The US operator contributed dividends of €4.4m, up from €2.1m, while the fair value of Playtech’s stake increased from €178m to €246m – more than three times its original investment of approximately €80m.
Group CEO Mor Weizer, commented on US/Latam growth: “We saw continued momentum in regulated markets, particularly in the Americas. The US delivered an outstanding performance, driven by our partnership with Hard Rock Digital, while we also saw another excellent period of growth in Latin America through our revised agreement with Caliente Interactive.”
Moving forward, leadership underscores the commercial significance of Hard Rock Digital exclusive Florida partnership with Past Motor Racing, the gaming network operated and owned by the Seminole Tribe – providing “exceptional returns that are expected to be normalised in H2 trading”.
Playtech underscores its “roster of exclusive igaming partnerships” that is further emboldened by Caliente Interactive in Mexico, which generated €36m in net cash contribution during period trading.
EBITDA delivers step change
Group adjusted EBITDA increased by 77% to €162m, in comparison with €91m in H1 2025. The adjusted EBITDA margin consequently expanded from 24% to 38%.
Group earnings are bolstered by a Playtech B2B unit generating a 75% increase in adjusted EBITDA results to €128m, from €73m recorded in H1 2025.
A further €34m was generated from income from key partnerships, up from €20m. This included €30m from Playtech’s 30.8% holding in Caliente Interactive, the €4.4m dividend from Hard Rock Digital and a €2.1m gain from the partial disposal of a listed investment, offset by losses from smaller holdings.
Playtech’s remaining B2C assets (Sun Bingo and HappyBet) generated a €200,000 contribution, which reversed the previous year’s €1.5m loss.
CEO Weizer said the group was seeing returns from previous investments “accelerate and contribute significantly to profitability, margin expansion and generating meaningful cash flow”.
The improved EBITDA performance drove adjusted profit before tax up 259% to €111.9m, while adjusted post-tax profit rose from €17m to €95m.
On a reported basis, Playtech generated a pre-tax profit of €113m, reversing the prior-year loss of €59m. Reported profit after tax stood at €98.1m, compared with a loss of €78m in H1 2025.
Margin gains help cash standings
Net cash generated from continuing operating activities reached €55m, compared with a loss of €68m during 2025. Leadership underscores benefits of prudency of a new operating model securing new cost disciplines across its operations to strengthen B2B operating margins from 21%-31%.
The firm’s improved B2B performance was partially offset by a €27.2m capital-gains tax payment related to the disposal of Snaitech and €36.3m of payments linked to Playtech incentive arrangements.
Free cash flow increased sharply from €6.6m to €101m, supported by higher EBITDA and €35.6m in net cash dividends from Caliente Interactive.
The group’s net cash position improved from €28.5m at the end of 2025 to €39.2m at 30 June, despite completing €24.6m of share repurchases during the period.
“Playtech has delivered a first half significantly ahead of our expectations at the start of the year, demonstrating the strength of our technology, the quality of our customer partnerships and the disciplined execution of our strategy,” continued Weizer
UK adjustments
Playtech nevertheless warned that H2 adjusted EBITDA will be lower than the exceptional first-half result as certain North American revenue streams normalise and UK tax headwinds become more pronounced.
UK B2B revenue declined by 8% to €59m, reflecting customer-specific changes and the increase in Remote Gaming Duty from 21% to 40% in April.
The tax increase also weighed on Sun Bingo, where lower marketing expenditure, declining player value and fewer active players contributed to a €4.5m fall in revenue. Playtech warned that the new duty rate had caused a “material deterioration” in Sun Bingo’s long-term profitability outlook.
Total B2C revenue declined by 22% to €32m, although reduced costs and the continuing wind-down of HAPPYBET helped the division return to positive adjusted EBITDA.
Playtech expects the UK duty increase to affect the entirety of H2, compared with only three months of the reporting period covered by the interim results.
Brazil investment continues
Alongside the expected normalisation of Hard Rock Bet’s Florida contribution, H2 earnings will reflect continued investment in a major strategic partnership in Brazil, which Playtech expects to sign towards the end of 2026.
The group has continued supporting existing Brazilian clients, onboarding new partners and expanding its local capabilities. Playtech also completed its São Paulo live casino studio, offering locally tailored content delivered by Portuguese-speaking dealers.
Despite the anticipated H2 adjustments, Playtech remains on course to deliver full-year adjusted EBITDA of more than €270m. Management also expects to reach the upper end of its medium-term targets of €250m-€300m in adjusted EBITDA and €70m-€100m in free cash flow earlier than originally anticipated.
Concluding on the outlook, Weizer stated: “Our balance sheet remains strong, and we are well-positioned to invest as required and also return capital to shareholders. We remain confident in achieving our ambitious medium-term targets and see exciting opportunities for the group across our markets.