Playtech reports strong H1 2026 as Americas growth supports higher profit

Playtech has reported a substantial improvement in its financial performance for the first half of 2026, with growth in the Americas and stronger returns from strategic investments contributing to higher earnings and cash generation. The company reported revenue of €425.1 million for the six months ended 30 June 2026, representing a 10% increase from €387.0 million in the same period of 2025.

The results also marked a significant improvement in profitability. Adjusted EBITDA reached €162.5 million, up 77% year on year from €91.6 million. The adjusted EBITDA margin increased from 24% to 38%, while reported profit after tax from continuing operations reached €98.1 million compared with a loss of €78.1 million in the corresponding period of 2025.

The figures underline the growing importance of Playtech's B2B technology operations and its investment portfolio as the group continues to focus on regulated and regulating markets. The company said its results were supported particularly by performance in North America and Latin America.

B2B division provides the main earnings contribution

The B2B division remained the central component of Playtech's operating performance during the period. B2B revenue rose 14% to €394.8 million compared with €347.6 million a year earlier. On an underlying basis, which excludes the effect of the revised Caliente Interactive agreement, growth was 17%.

Adjusted EBITDA from B2B increased 75% to €128.1 million from €73.3 million. The adjusted EBITDA margin for the division expanded to 32% from 21%, reflecting the combination of higher revenue and disciplined cost management.

Playtech also reported continued momentum in regulated markets. Underlying B2B revenue from regulated jurisdictions increased 21% year on year while regulated markets accounted for 83% of B2B revenue during the first half.

The company's SaaS operations also continued to expand. SaaS revenue increased 20% and represented 17% of B2B revenue. Live revenue rose 8% while Playtech said efficiency initiatives and table optimisation had contributed to an improvement in Live margins. The company reported approximately 480 Live tables globally.

Americas remains the key growth region

The Americas represented the strongest regional growth area for Playtech during H1 2026. Revenue from the US and Canada increased 161% year on year to €56.9 million. The company attributed much of this performance to its relationship with Hard Rock Digital and the success of Games powered by Past Motor Racing in Florida.

Playtech also expanded its regulated US presence during the period. The company entered Connecticut, taking its regulated iGaming footprint to six US states. It also reported launches and expansions involving Fanatics, FanDuel, DraftKings and bet365 across several states.

The company has nevertheless indicated that the unusually strong level of performance in Florida is expected to normalise during the second half. This is one reason Playtech expects H2 adjusted EBITDA to be lower than the first-half figure.

Canada also remained part of the group's expansion strategy. Playtech reported additional iGaming launches in Ontario and noted the transition of Alberta to a regulated iGaming market in July 2026.

Latin America strengthens its strategic role

Latin America continued to provide another important source of growth. Reported revenue increased 14% to €99.9 million while underlying growth reached 29%. Mexico and Colombia were identified as the main contributors to the regional performance.

The relationship with Caliente Interactive continued to play a significant role. Playtech owns a 30.8% stake in the business and recognised €30.1 million of share of income from the associate during H1 2026. Caliente also distributed €37.4 million in dividends to Playtech before tax during the period.

On a cash basis, Playtech said it received a net dividend of €35.6 million from Caliente. The contribution helped support the group's free cash flow generation during the period.

Playtech is also continuing to invest in Brazil. According to the company's interim results, a major strategic partnership is expected to be signed towards the end of 2026. The group has expanded its support for customers in the market and completed a live casino studio in São Paulo with Portuguese-speaking dealers and locally tailored content.

Investment income adds another earnings stream

In addition to its operating businesses, Playtech's investments made a larger contribution to the first-half results. Adjusted investment income increased to €34.2 million from €19.8 million in H1 2025.

Hard Rock Digital was another important element of the investment portfolio. Playtech received €4.4 million in dividends from the business during the first half compared with €2.1 million a year earlier. The fair value of Playtech's equity investment in Hard Rock Digital increased to €246.7 million at 30 June 2026 from €178.8 million at the end of 2025. Playtech said this represented more than three times its initial investment of approximately €80 million made in 2023.

This investment component is relevant to understanding the overall result because Playtech's reported adjusted EBITDA includes income from associates such as Caliente Interactive and dividends from certain equity investments, particularly Hard Rock Digital.

B2C operations remain under strategic review

Playtech's B2C division continued to be considerably smaller than its B2B operations. B2C revenue declined 22% to €32.0 million from €41.0 million in H1 2025.

Despite the revenue decline, adjusted EBITDA improved to a positive €0.2 million compared with a €1.5 million loss in the previous-year period. Sun Bingo and other B2C activities generated €1.5 million of adjusted EBITDA while the remaining HAPPYBET operation recorded a €1.3 million adjusted EBITDA loss.

HAPPYBET revenue declined 96% to €0.3 million as the business continued its wind-down in Germany. Playtech said the process was nearing completion and expected the remaining operations to be fully wound down by the end of 2026.

The B2C figures therefore reflect a business area undergoing significant contraction while Playtech places increasing strategic emphasis on technology, B2B services and investment income.

UK tax changes create additional pressure

The performance in the United Kingdom was more challenging. Playtech's UK B2B revenue declined 8% year on year to €59.0 million. The company attributed the reduction to certain customer changes and the higher UK Remote Gaming Duty.

From 1 April 2026, the UK Remote Gaming Duty rate increased from 21% to 40% of profits from remote gaming with UK customers. The change was established through the UK's gambling duty reforms and applies from accounting periods beginning on or after that date.

Playtech said the higher duty also affected Sun Bingo. Its interim report identified lower marketing expenditure alongside changes in player value and active player numbers as factors behind the decline in revenue. The company reported a €4.5 million year-on-year reduction in Sun Bingo revenue.

Profit and cash flow improve sharply

Adjusted profit before tax increased 259% to €111.9 million from €31.2 million in H1 2025. Reported profit before tax was €113.0 million compared with a reported loss of €58.8 million a year earlier.

Adjusted post-tax profit reached €95.0 million compared with €16.6 million in H1 2025. Reported profit after tax from continuing operations was €98.1 million compared with a loss of €78.1 million.

Free cash flow also increased considerably to €101.0 million. Playtech ended the period with net cash of €39.2 million after completing a share buyback of approximately €25 million. The company said it had repurchased around 1.8% of issued share capital during H1 2026.

The reported figures also include specific financial effects associated with the completed disposal of Snaitech and Playtech's incentive arrangements. The company recorded a €27.2 million capital gains tax payment connected with the disposal and €36.3 million in payments relating to its incentive arrangement.

Playtech maintains its full-year outlook

Despite the strong first half, Playtech has cautioned that the second half is expected to produce lower adjusted EBITDA than H1. The company cited the expected normalisation of Hard Rock Digital-related revenues in the United States, continued investment in the Brazilian strategic partnership and the full-period effect of higher UK Remote Gaming Duty.

Playtech nevertheless remains on track to deliver more than €270 million in adjusted EBITDA for FY 2026. Management also reiterated its medium-term targets of €250 million to €300 million in adjusted EBITDA and €70 million to €100 million in free cash flow.

Chief Executive Officer Mor Weizer said: “Playtech has delivered a first half significantly ahead of our expectations at the start of the year, demonstrating the strength of our technology, the quality of our customer partnerships and the disciplined execution of our strategy. We saw continued momentum in regulated markets, particularly in the Americas. The US delivered an outstanding performance, driven by our partnership with Hard Rock Digital, while we also saw another excellent period of growth in Latin America through our revised agreement with Caliente Interactive and we continued to scale our market-leading Live offering.”

He added that the company intends to continue expanding in regulated and regulating markets while investing in technology and artificial intelligence. Weizer has served as Playtech's chief executive since 2007.

Outlook for technology-led expansion

The H1 2026 results present a business increasingly centred on B2B technology, regulated-market expansion and selected strategic investments. Revenue growth was accompanied by a substantial increase in adjusted EBITDA and free cash flow while the Americas accounted for a growing share of the group's expansion.

At the same time, the results highlight several factors that will influence the remainder of the year. The exceptional Florida performance is expected to moderate, UK taxation is placing additional pressure on gaming-related economics and Brazil remains dependent on the expected completion of a future strategic partnership.

For Playtech, the second half will therefore provide a further test of how much of the first-half performance can be sustained as individual markets and partnerships move into different stages of development. The company's stated objective remains focused on regulated-market growth, closer customer relationships, continued technology investment and disciplined financial management.

Conclusion

Playtech's first-half 2026 results show a marked change in the group's reported financial position compared with the same period a year earlier. Revenue reached €425.1 million while adjusted EBITDA climbed to €162.5 million, supported by B2B expansion and stronger contributions from strategic investments. The Americas were especially important, with US and Canada revenue rising 161% and Latin America recording strong underlying growth.

The figures also demonstrate that Playtech's earnings profile is not dependent on a single source. B2B technology generated the largest operating contribution while Caliente Interactive and Hard Rock Digital provided additional investment-related income. At the same time, the company is reducing its exposure to the smaller B2C business through the continued wind-down of HAPPYBET.

The outlook remains dependent on several moving parts, including the normalisation of certain North American revenues, the impact of UK gambling taxation and progress towards the anticipated Brazilian partnership. Playtech has nevertheless retained its FY 2026 guidance of more than €270 million in adjusted EBITDA and continues to position its business around regulated-market technology, strategic partnerships and long-term cash generation.

FAQs

What did Playtech report for H1 2026?
Playtech reported revenue of €425.1 million for the six months ended 30 June 2026, up 10% year on year. Adjusted EBITDA increased 77% to €162.5 million.

How much did Playtech's B2B revenue increase?
B2B revenue increased 14% year on year to €394.8 million. Underlying growth was 17% after excluding the effect of the revised Caliente Interactive agreement.

Which region drove Playtech's growth?
The United States and Canada were the strongest growth region, with revenue increasing 161% year on year. Latin America also delivered strong underlying growth of 29%.

What was Playtech's adjusted EBITDA in H1 2026?
Playtech reported adjusted EBITDA of €162.5 million for H1 2026 compared with €91.6 million in H1 2025.

What happened to Playtech's UK B2B revenue?
UK B2B revenue declined 8% to €59.0 million. Playtech attributed the decline to certain customer changes and the higher Remote Gaming Duty rate.

What is Playtech's stake in Caliente Interactive?
Playtech holds a 30.8% stake in Caliente Interactive. The investment generated €30.1 million of share of income during H1 2026.

How did Hard Rock Digital contribute to Playtech?
Playtech received €4.4 million in dividends from Hard Rock Digital during H1 2026. The fair value of its investment increased to €246.7 million at the end of June.

What happened to Playtech's B2C revenue?
B2C revenue declined 22% to €32.0 million. Despite lower revenue, adjusted EBITDA improved to a positive €0.2 million.

Is Playtech still investing in Brazil?
Yes. Playtech said it is continuing to invest in a major strategic partnership in Brazil that is expected to be signed towards the end of 2026.

What is Playtech's FY 2026 EBITDA target?
Playtech expects to deliver more than €270 million of adjusted EBITDA in FY 2026. Its medium-term adjusted EBITDA target remains €250 million to €300 million.