Playtech H1 Profit Rises as B2B Model Drives Strong Cashflow

Playtech’s first full first-half reporting period under its reshaped business model produced a marked improvement in profit and cash generation, supported by its B2B operations and returns from strategic investments. The company reported the results after completing the Snaitech sale and revising its agreement with Caliente Interactive during the first half of 2025.

For the six months through June 30, 2026, revenue from continuing operations increased 10% to €425.1 million from €387 million. Adjusted EBITDA reached €162.5 million, representing a 77% rise from €91.6 million, while the corresponding group margin increased from 24% to 38%.

The difference was also visible at the bottom line. Reported profit before tax reached €113 million after a €58.8 million loss in the same period last year, and reported profit after tax moved from a €78.1 million loss to a €98.1 million profit. Adjusted profit after tax rose to €95 million from €16.6 million.

Playtech CEO 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.”

B2B Model Delivers Stronger Margins

B2B remained the main contributor to Playtech’s operating results, generating €394.8 million in H1 revenue. That represented a 14% increase from €347.6 million, or 17% growth on an underlying basis after excluding the effect of the revised Caliente Interactive agreement.

Adjusted EBITDA from B2B operations increased 75% to €128.1 million. Playtech reduced B2B costs by 3% to €266.7 million during the same period, helping its adjusted B2B EBITDA margin rise to 32% from 21%.

SaaS also continued to account for a larger part of the division. Revenue from this business increased 20% to €69 million and represented 17% of B2B revenue. Live revenue increased 8% year-on-year, while the company continued table optimisation and cost-efficiency measures.

Investment returns added €34.2 million to adjusted EBITDA, compared with €19.8 million a year earlier. Playtech’s 30.8% interest in Caliente Interactive contributed €30.1 million in associated income. Hard Rock Digital paid €4.4 million in dividends, more than double the €2.1 million recorded in H1 2025.

The value assigned to Playtech’s minority holding in Hard Rock Digital also increased substantially. It stood at €246.7 million at the end of June, compared with €178.8 million at the end of 2025 and an initial investment of approximately €80 million in 2023.

Free cash flow reached €101 million, up from €6.6 million in the corresponding period. A €35.6 million net cash dividend from Caliente Interactive contributed to the increase. Playtech ended June with net cash of €39.2 million, compared with €28.5 million at the end of December, after spending €24.6 million on share repurchases during H1.

The accounts also included a full €28.9 million provision against Playtech’s financial guarantee on NorthStar’s loan facility. The company cited NorthStar’s restructuring, continued losses, a cease trade order from the Ontario Securities Commission and the resignation of its independent auditor.

Americas Carry Regional Growth

North America delivered Playtech’s largest regional percentage increase. Revenue from the US and Canada rose 161% to €56.9 million, with the Hard Rock Bet relationship in Florida contributing heavily to the performance.

Playtech also expanded its US regulated iGaming footprint to six states after entering Connecticut. During the half, Fanatics launched its online casino offering with Playtech in New Jersey, Michigan, Pennsylvania and West Virginia. FanDuel expanded online casino and Live operations, while DraftKings added Live in Connecticut and bet365 expanded Live into Michigan.

Weizer said: “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.”

Latin America generated €99.9 million in B2B revenue, 14% above the previous year’s level. On an underlying basis, the increase reached 29%, with Mexico and Colombia providing the main support.

Caliente Interactive’s operations in Mexico continued to contribute through software licence fees and investment income. In Colombia, revenue increased by more than 100% year-on-year, with Playtech’s presence largely connected to its structured agreement with Wplay.

Brazil remained an investment area during the half. Playtech continued to support existing customers, added new partners and completed its São Paulo Live Casino studio. The company expects to sign a major strategic partnership in the country toward the end of 2026.

Outside the Americas, B2B revenue in Europe excluding the UK rose 2% to €104.5 million. Removing one-off hardware sales from the H1 2025 comparison resulted in growth of 10%, with Spain and Poland among the markets supporting the increase. Rest of World revenue grew 23% to €8.1 million, helped by activity in South Africa.

UK Costs and H2 Investment Temper Outlook

The UK moved in the opposite direction during H1. B2B revenue fell 8% to €59 million after the Remote Gaming Duty increased from 21% to 40% in April. Customer-specific developments, including one operator bringing self-service betting terminals in-house, also affected the result.

Playtech’s smaller B2C division recorded revenue of €32 million, down 22% from €41 million. Despite that reduction, adjusted EBITDA improved from a €1.5 million loss to a €200,000 profit as the company continued winding down HAPPYBET.

Sun Bingo and other B2C activities generated €31.7 million in revenue, down 5%. Sun Bingo revenue fell by €4.5 million following reduced marketing expenditure and continued regulatory effects. Playtech said the higher Remote Gaming Duty materially weakened the brand’s long-term profitability outlook.

HAPPYBET revenue dropped 96% to €300,000 as its closure process continued, while adjusted EBITDA losses narrowed to €1.3 million from €2.3 million. Playtech expects to complete the wind-down by the end of 2026.

Management expects second-half adjusted EBITDA to come in below the H1 figure. The company anticipates more sustainable revenue levels from its Hard Rock Digital-related activity in Florida and expects continued spending connected with the planned Brazil partnership. H2 will also include a full six months of the higher UK Remote Gaming Duty.

Even with those expected pressures, Playtech maintained its forecast for more than €270 million in adjusted EBITDA for 2026. It also expects to reach the upper end of its medium-term adjusted EBITDA target of €250 million to €300 million and its €70 million to €100 million free cash flow range earlier than initially anticipated.

Weizer said: “Looking ahead, we are focused on extending our presence in regulated and regulating markets, deepening our customer relationships and continuing to invest in our products and technology offering including further leveraging the benefits of artificial intelligence. We see substantial opportunities for further growth and remain confident in the long-term potential of the business.”

“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.”

Source:

Results for the six months ended 30 June 2026, Playtech plc, September 10, 2026.