Playtech's strong performance in the first half of the year was fueled by impressive results in the US and Latin America, prompting the company to raise its full-year 2026 EBITDA guidance. In a trading statement released on Thursday, Playtech revealed that the momentum from its Q1 update continued to build through May and June, leading to H1 results that exceeded market expectations significantly. The anticipated adjusted EBITDA for the first half is over €155 million, bolstered by contributions from the US as well as continuing success in markets like Mexico and Colombia.
The company has now revised its full-year adjusted EBITDA forecast for FY 2026 to at least €270 million, a substantial increase above the analyst consensus, which ranged between €205 million and €225 million. CEO Mor Weizer expressed optimism about the company's trajectory, 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, Jonathan Doubilet, Playtech’s General Manager for the US, acknowledged the significance of their operations in the country. "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 noted. Playtech entered the US market in 2020 and has only recently fully connected with various operators, calling this phase the true beginning of their American operations. He sees the US as a crucial growth engine, expressing optimism about future developments.
However, Playtech anticipates a slowdown in EBITDA during the second half of the year due to an extensive investment in a new sports and slot hybrid game in partnership with Hard Rock Digital. This game, based on Past Motor Racing (PMR) results, allowed Playtech to take an early lead in the market with Hard Rock Digital. Weizer commented on their collaboration, saying, "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."
Although Playtech predicts Hard Rock Digital will remain a major customer, it foresees their revenue leveling off to a "lower but more sustainable level" for the remainder of the year, continuing into 2027. Additionally, the company has been making substantial investments in a significant partnership with Caixa Economica Federal in Brazil, where a betting brand launch is now postponed to 2027 at the earliest following political challenges.
This timing is crucial as Playtech expects to begin incorporating the benefits from this relationship in 2027. Furthermore, Playtech will have to absorb the impact of the nearly doubled Remote Gaming Duty in the UK starting on April 1, 2026, which will likely further affect adjusted EBITDA in the upcoming months.
Analysts responded to Playtech's H1 performance with enthusiasm. Investec labeled the unexpected results as "exceptionally strong," advocating for an upward revision of forecasts. "These numbers testify to the strength of Playtech’s model, as well as to the potential from Hard Rock Digital," they commented, adding that they will review their FY 26, FY 27, and FY 28 projections, maintaining that the stock remains undervalued despite a recent 14% price increase. Peel Hunt echoed this sentiment, highlighting the value of Playtech’s diverse geographical reach and product offerings, noting that the company was perhaps taking a cautious approach with its guidance, adjusting its own forecast for FY2026 EBITDA up by 20% to €270 million.
