Playtech (LON:PTEC) reported a sharp increase in first-half profitability and cash generation, supported by growth in regulated B2B markets, a strong contribution from strategic investments and cost-reduction measures.
Adjusted EBITDA rose 77% year over year to €163 million in the first half of 2026, while free cash flow reached €101 million. The company said the performance represented an inflection point following its strategic shift toward a focused B2B technology business.
Americas Drive Revenue Growth
The U.S. and Canada were the company’s fastest-growing regions, with revenue rising 176% on a constant-currency basis. Playtech attributed the increase principally to its relationship with Hard Rock Digital, as well as growth with tier-one operators across its Live, Casino and PAM+ platform offerings.
The company said its U.S. operation reached profitability earlier than expected. It expanded its presence to six regulated iGaming states with a Connecticut launch and operated more than 60 tables across three U.S. live studios at the end of June.
During the period, Playtech launched products with Fanatics in multiple states, FanDuel in West Virginia and bet365 in Michigan. It also rolled out its iPoker platform with FanDuel in several markets. Playtech content was live with 15 operators across more than 50 brands in the U.S., the company said.
Latin American underlying revenue grew 29%, aided by Caliente’s performance in Mexico and growth in Colombia. Playtech said its equity holding in Caliente contributed about €30 million in adjusted EBITDA from investment income and delivered €37 million in dividends toward free cash flow.
Caliente benefited from customer-acquisition activity surrounding the 2026 FIFA World Cup, according to management. CFO Chris McGinnis said significant marketing spending during June and July could reduce Caliente’s short-term income contribution, while the company expects the acquired customers to support growth in future periods.
Elsewhere, Europe excluding the U.K. grew 2%, or 10% excluding a non-recurring Hard Rock sale in the prior-year period. Poland and Spain delivered strong results. The U.K. was affected by customer-specific changes and higher Remote Gaming Duty, management said.
Margins Improve as Costs Fall
Playtech’s adjusted EBITDA margin from operations improved to 30.2%, while its B2B adjusted EBITDA margin reached 32.4%. The company said it removed more than €20 million of annualized run-rate costs during the half, contributing to a 3% decline in B2B costs year over year.
McGinnis said cost actions included addressing underperforming businesses, reducing research and development spending in non-core areas and controlling central corporate costs. The wind-down of HAPPYBET was nearing completion, he said.
Live Casino remained an investment priority. Regulated-market Live revenue grew 12%, while margins improved through table optimization, improved utilization and narrowing U.S. losses. Playtech operated 480 tables across 20 Live studios globally at the end of June.
In July, the company launched its AI-enabled Live Virtual Host product with several customers. The tool provides real-time game commentary and can be customized by market and brand, according to Playtech.
Hard Rock Investment and Outlook
Management highlighted the growing value of Playtech’s structured partnership with Hard Rock Digital. Playtech invested $85 million in Hard Rock Digital in 2023, and said its stake had more than tripled in value to about €250 million as of June 30, 2026.
Hard Rock Digital operates with Playtech across New Jersey, Michigan, Florida and Ontario, using a range of products including casino, Live Casino, sports and PAM+. Playtech said the rollout of its Past Motor Racing games in Florida was a major contributor to first-half growth.
However, the company expects Hard Rock Digital’s contribution to trend to a lower but more sustainable level in the second half as other third-party suppliers are introduced in Florida. McGinnis said this would lead to a temporary normalization in EBITDA and margin performance, though Playtech expects revenue, EBITDA and margins to resume expansion from that rebased level.
Management said it has made an “excellent” start to the second half, particularly in the Americas, and maintained full-year adjusted EBITDA guidance of more than €270 million. Playtech expects second-half adjusted EBITDA to be lower than the first half.
Cash Position and Capital Allocation
Playtech ended June with net cash of €39 million, compared with €29 million at the start of the year, despite a €25 million share buyback program that repurchased 1.8% of issued share capital. The company also paid more than €60 million of remaining cash outflows related to the Snaitech sale, with the balance due in the first half of 2027.
The group has a €300 million bond maturing in June 2028 and is assessing refinancing options. Its €225 million revolving credit facility remained fully undrawn at the end of the period.
The company said capital allocation priorities remain organic investment in growth markets and product verticals, maintaining flexibility for regulatory changes and potential selective acquisitions, and returning structural surplus capital to shareholders. Playtech has returned approximately €100 million to shareholders through buybacks over the past 12 months and said its board regularly discusses potential future dividends and repurchases.
Management said Playtech was ahead of schedule on medium-term targets of €300 million in adjusted EBITDA and €100 million in free cash flow, although it plans to revisit those targets after year-end. Brazil remains a strategic focus, with management saying it expects to conclude an agreement and launch around the beginning of next year following the country’s election period.
About Playtech (LON:PTEC)
Playtech plc, a technology company, provides gambling software, services, content, and platform technologies worldwide. The company offers technologies across various product verticals, including live casino, sports, bingo, virtual sports, and poker. It also owns the intellectual property rights and licenses the software; provides digital marketing and advertising, consulting and online technical support, data mining processing, turnkey, live game, and video stream services; and operates betting shops.
