Playtech PLC reported a robust first-half 2026 performance, with adjusted EBITDA rising 77% year-over-year to EUR 163 million, exceeding 60% of its full-year guidance of over EUR 270 million. Free cash flow climbed to EUR 101 million, up from roughly EUR 30 million across all of 2025, while B2B revenue grew 14% to EUR 395 million. The company’s net cash position improved to EUR 39 million, and it spent EUR 25 million on share buybacks, returning approximately EUR 100 million over the trailing 12 months. Strategic cost reductions—including EUR 20 million in annual run-rate savings—supported these gains, while an undrawn EUR 225 million revolving credit facility and a EUR 300 million bond maturing in June 2028 remain key financial pillars.
The U.S. and Canada markets drove particularly strong growth, with revenue surging 176% in constant currency, fueled by the Hard Rock Digital partnership and expansion into six new regulated iGaming states. Live casino operations expanded to 480 tables across 20 studios, while the company launched an AI-powered virtual host in July. In Latin America, underlying revenue rose 29%, with contributions from Mexico and Colombia. Europe (excluding the U.K.) saw a 2% increase, adjusted for prior-period non-recurring items, while the U.K. faced challenges from customer-specific adjustments and higher Remote Gaming Duty.
CEO Mor Weizer described the results as a ‘landmark period’ and an ‘inflection point’ in profitability and cash generation, citing disciplined execution over years. The U.S. business, he noted, became profitable earlier than anticipated due to the Hard Rock Digital collaboration—a model combining strategic investment, proprietary technology, and innovation. While Weizer declined to comment on pending litigation with Evolution, the company remains focused on its five-year targets: achieving EUR 300 million in adjusted EBITDA and EUR 100 million in free cash flow.
The stock opened 0.1% lower at $396.80 in early trading, following a 40% year-to-date gain and a 52-week range of $210 to $446. With a market capitalization of approximately $1.49 billion and a beta of 0.66, Playtech’s valuation reflects its growth trajectory and operational diversification across gaming technology, B2B services, and international expansion.
The Hard Rock Digital stake, valued at around EUR 250 million as of June 2026—a triple from its 2023 investment of $85 million—contributed EUR 30 million to adjusted EBITDA and EUR 37 million to free cash flow through dividends. Caliente Interactive’s investment income and dividends also played a role, while remaining Snaitech sale outflows are expected to be completed in the first half of 2027.
Playtech’s strategic asset book remains valued at over EUR 1.2 billion, underscoring its stake in high-growth segments such as digital gaming, sports betting, and live casino operations. The company’s financial flexibility, supported by its credit facilities and bond structure, positions it well for continued expansion and shareholder returns.
