Playtech has reported an impressive performance for the first half of the year, exceeding expectations in the US and Latin America, prompting the company to raise its full-year EBITDA guidance for 2026. The company released its trading update on Thursday, highlighting a significant acceleration in its activities throughout the Americas, particularly during May and June, which followed a strong first quarter.
The results for the first half of 2023 are expected to show an adjusted EBITDA exceeding €155 million, which is considerably above market forecasts. Playtech attributes this success to strong outcomes in the US market, as well as continued robustness in regions such as Mexico, Colombia, and certain European countries.
For the entirety of fiscal year 2026, Playtech anticipates an adjusted EBITDA of at least €270 million, well above previous consensus expectations ranging from €205 million to €225 million. CEO Mor Weizer expressed confidence in the company’s direction for the remainder of the year, stating, "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."
In a recent interview with GGB, Jonathan Doubilet, General Manager for the US, reflected on the company’s growth potential. "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 remarked. He stressed that Playtech only began fully integrating with various operators in mid to late 2023 and views the current phase as just the beginning of their journey in the US market.
Looking to the second half of the year, Playtech does expect its adjusted EBITDA to decrease compared to the first half. This change is attributed to an ongoing investment in a new slot/sports hybrid game developed in partnership with Hard Rock Digital, which utilizes Past Motor Racing (PMR) results. Weizer noted that the partnership has yielded exceptionally strong performance, contributing significantly to profitability and cash flow, though revenues from Hard Rock Digital are expected to temper to a "lower but more sustainable level" moving forward.
Playtech has made substantial investments this year in its partnership with Caixa Econômica Federal in Brazil, aimed at launching a betting brand. However, following political pressures, the planned rollout has been postponed, with expectations now set for 2027 at the earliest, which might lead to contributions to growth beginning then.
The company also anticipates the full impact of the Remote Gaming Duty doubling in the UK on April 1, 2026, which is expected to further affect adjusted EBITDA for the remainder of this year.
Analysts weighed in on Playtech's strong H1 results with Investec calling them "exceptionally strong" and suggesting necessary upward revisions to forecasts, emphasizing the firm's business model strength and future earnings potential from Hard Rock Digital, a sentiment echoed by Peel Hunt, which highlighted the growing value of Playtech’s diversified products and geographic reach.
