Playtech returns to profitability with strong H1 results
The London-listed gambling technology group recorded revenue of €425m for the six months to June 30.
UK.- Playtech has reported a return to profitability in the first half of 2026 and reiterated confidence in delivering its full-year targets after strong growth across its core business, driven primarily by commercial partnerships in North and Latin America. The London-listed gambling technology group recorded revenue of €425m for the six months to June 30, up 10 per cent from the corresponding period last year.
Profitability improved significantly. Adjusted EBITDA rose 77 per cent to €162m, while the adjusted EBITDA margin expanded from 24 to 38 per cent. The B2B division was the primary contributor, with adjusted EBITDA climbing 75 per cent to €128m. Income from strategic partnerships increased to €34m, including returns from Playtech’s 30.8 per cent stake in Caliente Interactive, dividends from Hard Rock Digital and gains from the partial disposal of a listed investment.
B2C revenue fell 22 per cent to €32m, although lower operating costs and the ongoing wind-down of HappyBet enabled the division to return to positive adjusted EBITDA. Together, Sun Bingo and HappyBet delivered a positive contribution of €0.2m, compared with a €1.5m loss in the prior-year period.
Strong results in the Americas
The Americas continued to be Playtech’s key growth engine. Revenue from the US and Canada surged 161 per cent to €57m, while revenue from Latin America rose 14 per cent, or 29 per cent on a consistent underlying basis, reaching €100m. Growth in the US was supported by the expansion of Playtech’s igaming and live casino offering with major operators including FanDuel, Fanatics, bet365 and DraftKings across several regulated states.
The group benefited from its strategic relationship with Hard Rock Digital. Dividends received from the operator reached €4.4m, up from €2.1m a year earlier, while the value of Playtech’s stake climbed from €178m to €246m, more than triple its original investment of around €80m.
Playtech also pointed to its portfolio of exclusive igaming partnerships, particularly its relationship with Mexico-based Caliente Interactive, which contributed €36m in net cash during the reporting period.
Elsewhere, UK B2B revenue declined 8 per cent to €59m, impacted by customer-specific factors and the increase in Remote Gaming Duty from 21 per cent to 40 per cent in April. The higher tax burden also affected Sun Bingo, where reduced marketing spend, falling player values and a decline in active customers contributed to a €4.5m reduction in revenue.
Adjusted profit before tax jumped 259 per cent to €111.9m, while adjusted post-tax profit increased from €17m to €95m. On a reported basis, Playtech posted a pre-tax profit of €113m, compared to a loss of €59m in H1 2025. Reported profit after tax reached €98.1m compared with a loss of €78m a year earlier. The stronger performance was partly offset by a €27.2m capital gains tax payment related to the disposal of Snaitech and €36.3m in payments associated with incentive arrangements.
Looking ahead
Despite the strong first-half performance, Playtech cautioned that adjusted EBITDA in the second half would fall below the exceptional level achieved in H1 as some North American revenues normalise and UK tax pressures intensify.
The company says it remains on track to deliver full-year adjusted EBITDA of more than €270m and to reach the upper end of its medium-term objectives of €250m to €300m in adjusted EBITDA and €70m to €100m in free cash flow sooner than previously forecast.
Playtech highlighted its continued investment in Brazil, where it’s working towards a major strategic partnership expected to be finalised by the end of 2026. The company has expanded support for local clients, added new partners and completed a live casino studio in São Paulo featuring Portuguese-speaking dealers and locally tailored content.
Group chief executive Mor Weizer said: “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.”
