Playtech Beats 2025 Earnings Forecast with Americas Growth

Playtech has revised its earnings forecast for the 2025 financial year, expecting adjusted EBITDA to reach at least €195 million, significantly surpassing analysts’ previous estimates. This performance is largely attributed to the company’s growth in the Americas, particularly in the United States and Mexico.

According to Playtech’s trading update, for the year ending December 31, 2025, the company projects adjusted EBITDA to exceed initial estimates of between €150 million and €187 million. This positive revision comes despite several challenges the company faced during the year, including a loss from its German B2C business, HappyBet, which was sold in Q1 of 2025. The group’s decision to become a pure-play B2B supplier following the sale of its Snaitech division to Flutter Entertainment earlier in the year also contributed to the mixed results.

CEO Mor Weizer expressed satisfaction with the company’s end-of-year performance, highlighting the company’s investments in the Americas. “I’m delighted with the strong performance we saw at the end of 2025. We have been steadily investing across our business in the Americas for a number of years, and I’m particularly pleased with our recent progress in the US,” said Weizer. He added that the company’s efforts were now beginning to yield positive results, particularly in the US market, where profitability is starting to accelerate.

Americas Growth Fuels Optimism for 2026

Playtech’s trading performance in Q4 of 2025 in the Americas has been a key factor in its positive outlook for the upcoming year. The company’s investments in regulated markets, notably in North and Latin America, have allowed it to enter 2026 with strong momentum. Playtech anticipates continued growth in the region, with plans to selectively increase investments in the US and other parts of the Americas, capitalizing on emerging opportunities.

However, Playtech remains cautious about external challenges, particularly the increase in gaming taxes in various jurisdictions. Notably, the UK government’s decision to raise the remote gaming duty from 21% to 40% in April 2026 poses a potential headwind for Playtech’s operations. A new general betting duty, set to be introduced in 2027, will also increase taxes on remote betting, further complicating the company’s outlook.

Despite these challenges, Playtech’s medium-term outlook remains optimistic, with the company projecting adjusted EBITDA of between €250 million and €350 million for the next few years. Additionally, Playtech expects free cash flow to range from €70 million to €100 million during the same period.

Positive Market Sentiment Amid Transition to B2B

The company’s transition to a B2B-only business model has been met with a degree of uncertainty from the market, particularly following the sale of Snaitech. However, Playtech has seen positive investor sentiment recently, as evidenced by a 2-3% increase in its share price on the London Stock Exchange following the trading update. This uptick reflects growing confidence in Playtech’s prospects, particularly its strong US operations.

Analysts are cautiously optimistic, with Peel Hunt raising its 2026 EBITDA forecast by €4 million, or 2%, to €215 million. The firm sees potential revenue growth from Playtech’s partnership with Hard Rock in Florida and its possible involvement with Caixa in Brazil, both of which could significantly contribute to the company’s revenue in the coming years.

As Playtech enters 2026, it faces both opportunities and challenges. The company remains committed to its growth strategy, particularly in the Americas, while keeping a close eye on the evolving regulatory environment.

Source:

FY25 Trading Update, londonstockexchange.com, February 5, 2026