Profit Reversal Anchored by Americas
Playtech Plc, the London-listed gambling technology group, swung to a reported pre-tax profit of €113 million in the first half of 2026, erasing a €59 million loss recorded over the same period last year. Reported profit after tax stood at €98.1 million against a prior-year loss of €78 million.
Group revenues climbed 10 percent to €425 million from €387 million, with the company identifying North and Latin America as the principal engines of that growth. US and Canadian revenue jumped 161 percent to €57 million. Latin American revenue rose 14 percent to €100 million, a figure Playtech said represented 29 percent growth on what it called a consistent underlying basis.
CEO Mor Weizer attributed the US performance to the partnership with Hard Rock Digital and described Latin American growth as driven by a revised agreement with Caliente Interactive.
Content Deals and Investment Returns
Playtech expanded its iGaming and live casino content supply to FanDuel, Fanatics, bet365 and DraftKings across New Jersey, Michigan, Pennsylvania, West Virginia, Delaware and Connecticut during the period.
The Hard Rock Digital relationship produced dividends of €4.4 million, roughly double the €2.1 million received a year earlier. The fair value of Playtech’s minority stake in the US operator rose from €178 million to €246 million, a multiple of more than three times the original investment of approximately €80 million.
In Mexico, Playtech’s 30.8 percent holding in Caliente Interactive generated €36 million in net cash contribution. The group also received €35.6 million in net cash dividends from Caliente during the half. Income from key partnerships across the portfolio totalled €34 million, up from €20 million, and included a €2.1 million gain from the partial disposal of a listed investment.
EBITDA Margin Nearly Doubles
Adjusted EBITDA rose 77 percent to €162 million from €91 million, pushing the margin from 24 percent to 38 percent. The B2B division accounted for most of the gain, with adjusted EBITDA up 75 percent to €128 million from €73 million. Playtech said B2B operating margins improved from 21 percent to 31 percent under a new cost-discipline model.
Adjusted profit before tax increased 259 percent to €111.9 million, and adjusted post-tax profit grew from €17 million to €95 million. Free cash flow surged from €6.6 million to €101 million, aided by the Caliente dividends and higher EBITDA.
The net cash position improved to €39.2 million at 30 June from €28.5 million at the end of 2025, even after €24.6 million in share repurchases. Net cash generated from continuing operating activities reached €55 million, a reversal from a €68 million outflow a year earlier. A €27.2 million capital-gains tax payment tied to the Snaitech disposal and €36.3 million in payments linked to Playtech incentive arrangements were noted as partial offsets to the B2B improvement.
The remaining B2C assets, Sun Bingo and HappyBet, produced a €200,000 contribution, reversing a €1.5 million loss in the prior-year period.
UK Duty Increase Hits Domestic Revenue
Playtech cautioned that second-half adjusted EBITDA will be lower than the first-half figure as certain North American revenue streams normalise and UK tax headwinds intensify.
UK B2B revenue fell 8 percent to €59 million, reflecting customer-specific changes and the April increase in Remote Gaming Duty from 21 percent to 40 percent. The higher duty also weighed on Sun Bingo, where reduced marketing spend, declining player value and fewer active players drove a €4.5 million revenue decline. Playtech said the new rate had caused a material deterioration in Sun Bingo’s long-term profitability outlook.
Total B2C revenue dropped 22 percent to €32 million, though cost reductions and the ongoing wind-down of the HappyBet brand helped the division return to positive adjusted EBITDA. The company noted the duty increase affected only three months of the reporting period and will impact the entirety of H2.
H2 Normalisation and Brazil Build-Out
Management expects the Florida contribution from Hard Rock Digital’s exclusive partnership with Past Motor Racing, the gaming network operated and owned by the Seminole Tribe, to normalise in the second half after what it described as exceptional first-half returns.
Playtech also pointed to continued investment in a major strategic partnership in Brazil that it expects to sign toward the end of 2026. The group has been onboarding new Brazilian partners and expanding local capabilities, and completed a São Paulo live casino studio that delivers locally tailored content through Portuguese-speaking dealers.
Despite the anticipated H2 adjustments, Playtech reaffirmed its full-year adjusted EBITDA target of more than €270 million and said it expects to reach the upper end of its medium-term targets of €250 million to €300 million in adjusted EBITDA and €70 million to €100 million in free cash flow earlier than originally planned.
Why It Matters
Playtech supplies iGaming and live casino content to FanDuel, bet365, DraftKings and Fanatics in the US, making its Americas revenue a direct read on content demand in regulated markets. The UK's Remote Gaming Duty jump from 21% to 40% is already compressing B2B margins and Playtech flagged a material threat to Sun Bingo's long-term viability. A Brazil partnership expected to be signed by year-end would extend the group's footprint into another major regulated market.
David Farbacu is a seasoned writer with a passion for games, gaming, casinos, and Xbox. With a wealth of experience in the industry, David brings insightful reviews, comprehensive guides, and engaging articles that cater to both casual gamers and hardcore enthusiasts. His expertise spans across various gaming platforms and genres, making him a go-to source for the latest trends and developments in the gaming world.
