Playtech (PTEC) H2 2025 earnings summary

Executive summary

• 2025 marked a strategic transformation with a reset to core B2B operations, the sale of Snaitech for EUR 2.3 billion, and a sharpened focus on technology, resulting in adjusted EBITDA of EUR 197 million, about 20% above market expectations.

• Net cash position of EUR 29 million achieved after repurchasing 8.3% of equity capital for EUR 77 million in H2 2025.

• Strategic investments in Caliente Interactive and Hard Rock Digital contributed significantly to investment income and overall performance.

• Board remains confident in delivering medium-term targets and executing the B2B-focused strategy.

Financial highlights

• Adjusted EBITDA reached EUR 197 million, up 20% versus market expectations at the start of 2025, but down 9% year-on-year including investment income.

• Group revenue declined 10% year-on-year to EUR 763.6 million; adjusted EBITDA from operations fell 37% to EUR 135.2 million.

• Free cash flow improved in H2 2025, though full-year free cash flow dropped 60% year-on-year to EUR 29.5 million due to changes in the Caliente agreement.

• Reported B2B revenue was EUR 688 million, down year-on-year due to the Caliente agreement, but underlying regulated B2B revenue grew 6%.

• Investment income from Caliente and Hard Rock Digital accounted for most of the EUR 62 million in adjusted EBITDA from investments.

Outlook and guidance

• 2026 adjusted EBITDA is expected to exceed current market expectations, supported by strong momentum in the Americas and the FIFA World Cup catalyst in Mexico.

• CapEx for 2026 is projected at EUR 90–100 million, mainly for Brazil expansion; effective tax rate expected at 25–28%.

• Medium-term targets reaffirmed: EUR 250–300 million adjusted EBITDA and EUR 70–100 million free cash flow.