Playtech has reported a strong performance in the first half of the year, particularly in the US and Latin America, prompting the company to raise its full-year guidance for 2026. In a trading update released on Thursday, Playtech expressed that results from the Americas have exceeded expectations, continuing the momentum noted in its Q1 update earlier this year, especially through May and June.
During this period, the company anticipates an adjusted EBITDA of over €155 million, significantly surpassing market expectations, driven by solid performances in the US and robust growth in Mexico, Colombia, and various European markets.
Looking ahead to fiscal year 2026, Playtech now projects full-year adjusted EBITDA to reach at least €270 million, well above the consensus estimate that ranges between €205 million and €225 million.
CEO Mor Weizer expressed confidence in Playtech’s growth trajectory for the remainder of the year. "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," he stated.
In a recent discussion with iGB’s affiliate publication GGB, Playtech’s US General Manager Jonathan Doubilet emphasized the importance of the US market for the company. "The US is very important. Did we exceed our expectations? Yeah, I can say we did. But we have to keep up the momentum because we’re very young here," he shared.
Since entering the market in 2020, Playtech has gradually developed partnerships with operators, enhancing its market presence. Doubilet described the company's growth in the US as just the beginning, stating, "There’s so much more to come."
Despite the solid first-half results, Playtech anticipates a decline in adjusted EBITDA for the latter half of the year. This expectation is primarily due to ongoing investments in a new slot and sports hybrid game tied to its partnership with Hard Rock Digital. Playtech reported that early entry into the market with Hard Rock Digital on its Past Motor Racing (PMR) product has already proven beneficial.
Weizer noted, "Performance in the US, driven by our partnership with Hard Rock Digital, has been exceptionally strong. We are delighted to see returns on our investments over recent years accelerate and contribute significantly to profitability and cash flow."
However, Playtech expects revenue from Hard Rock Digital to stabilize at a “lower but more sustainable level” as it continues through the rest of 2026 and into 2027. Additionally, significant investments have been made this year in a major partnership with Caixa Economica Federal in Brazil, which has been delayed and is now projected to launch no earlier than 2027 after initial plans were pushed back due to political pressures.
The company expects to see potential growth from this partnership starting in 2027. Playtech will also face challenges from an almost doubling of the Remote Gaming Duty in the UK, effective April 2026, which is anticipated to have a further negative impact on adjusted EBITDA for the remainder of the year.
Analysts responded positively to Playtech's H1 results. Investec labeled them "exceptionally strong" and suggested a revision in future forecasts. "These numbers testify to the strength of Playtech’s model, as well as to the potential from Hard Rock Digital," the note indicated. Peel Hunt echoed this sentiment, emphasizing the value of Playtech's diverse product offerings and geographical reach while also increasing their FY 2026 EBITDA forecast for Playtech by 20% to €270 million.
