Playtech has reported robust performance in the Americas during the first half of the year, leading to an upward revision of its EBITDA expectations for FY2026. In a trading update released on Thursday, the company noted that its strong results, particularly in the US and across Latin American markets, significantly exceeded forecasted earnings.
The company anticipates adjusted EBITDA for H1 to exceed €155 million, driven by impressive performance in the US alongside continued growth in Mexico, Colombia, and certain European markets. Following this momentum, Playtech has raised its full-year adjusted EBITDA guidance from a consensus of between €205 million and €225 million to at least €270 million.
CEO Mor Weizer expressed confidence in Playtech's trajectory as the company moves into the second half 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.
Jonathan Doubilet, Playtech's General Manager for the US, emphasized the importance of the US market during a recent interview. He acknowledged the company's rapid growth since entering the market in 2020 and noted that the partnership with various operators has started yielding significant results. "The US is a growth engine. We’re performing quite well, very well indeed, but I see it as just the tip of the iceberg. There’s so much more to come," Doubilet highlighted in June.
However, while Playtech is buoyed by its H1 results, it anticipates a decline in adjusted EBITDA in the second half due to ongoing investments in a new slot/sports hybrid game developed in partnership with Hard Rock Digital. This innovation leverages Past Motor Racing (PMR) results and has successfully positioned Playtech as a market leader.
Weizer indicated that while Hard Rock Digital will likely remain one of Playtech's largest clients, revenue from the operator is expected to stabilize at a “lower but more sustainable level” for the remainder of 2023 and into 2027.
In addition, Playtech has invested significantly in its partnership with Caixa Economica Federal in Brazil, a venture anticipated to launch its own betting brand. Although Weizer previously viewed this partnership as a major opportunity, the project is currently on hold, with its debut now delayed to at least 2027 due to political pressures.
Playtech will also have to account for the substantial increase in Remote Gaming Duty in the UK, set to nearly double from April 1, 2026, which will further impact its adjusted EBITDA in the coming months.
Analysts have reacted positively to Playtech's H1 performance. Investec described the results as “exceptionally strong” and noted the need for upward revisions in forecasts. Peel Hunt echoed this optimism, recognizing the value of Playtech's diversification across geography and products and suggesting the company's ties to Hard Rock Digital are increasingly significant.
