Playtech Reports Strong First Half Results Exceeding Expectations
Playtech’s Solid First Half Performance
Playtech, a leading technology provider in the gambling industry with over 7,400 employees across 20 countries, has released its financial results for the six months ending June 30. The company specializes in delivering business intelligence-driven gambling software, services, content, and platform technology across popular product verticals.
In the first half of the year, Playtech demonstrated solid performance as it refocused on its core B2B operations. This strategic shift included divesting non-core assets, revising partner agreements, and strengthening its financial position.
B2B Revenues and Financial Highlights
For the first half of 2025, Playtech reported revenue from continuing operations of EUR 387.0 million (approximately $452.4 million), which is a 10% decline compared to the same period last year. Adjusted EBITDA also decreased by 16% to EUR 91.6 million ($107 million). These declines largely stem from changes related to the Caliente Interactive agreement as of March 31, which resulted in Playtech acquiring a 30.8% equity stake, and the sale of Snaitech for roughly EUR 2.3 billion ($2.68 billion), part of which was distributed to shareholders as a special dividend totaling EUR 1.8 billion ($2.1 billion).
Despite these decreases, Playtech’s net cash position improved significantly to EUR 77.1 million ($90.1 million), compared to a net debt of EUR 142.8 million ($167 million) at the end of 2024.
Excluding the impact of the Caliente arrangement, B2B revenue actually increased by 3%, or 6% on a constant currency basis, driven primarily by strong growth in the U.S. market. Additionally, B2B Adjusted EBITDA from operations rose by 3% compared to the same period last year. The company highlighted effective cost management, which was partially offset by increased investments in the U.S. and Brazil and some currency and other challenges.
Software-as-a-Service (SaaS) revenue saw a substantial increase of 73%, reaching EUR 57.3 million ($67 million), demonstrating Playtech’s growing momentum in multiple countries. Adjusted investment income also rose sharply from EUR 1.5 million ($1.75 million) in the first half of 2024 to EUR 19.8 million ($23.1 million), boosted by Playtech’s share of income from Caliente amounting to EUR 20.3 million ($23.7 million).
Strong Growth in the U.S. and Canada
Revenue from the U.S. and Canada markets climbed 64% year-over-year to EUR 21.8 million ($25.4 million). This growth was supported by new launches with major operators and regulatory expansions, including the entry into West Virginia. Playtech also expanded its Live Casino offerings and has plans to invest further in studio development.
The company is continuing to invest in its workforce, increasing its U.S. headcount by more than 500 employees by the end of the first half. The fair market value of Playtech’s equity investment in Hard Rock Digital also increased to EUR 150.3 million ($175.7 million), reflecting positive performance.
Challenges and Developments in Latin America
Latin America experienced a 32% decline in revenue, influenced by the Caliente agreement and regulatory and tax challenges in countries such as Colombia. However, when excluding the Caliente effect, the underlying revenue in the region showed modest growth. The upcoming regulated market transformation in Brazil is viewed as a promising development for the company’s future prospects in Latin America.
Playtech’s CEO, Mor Weizer, expressed optimism about the growth potential in several soon-to-be regulated markets including Ireland, New Zealand, and the UAE.
Furthermore, as part of its financial restructuring, Playtech fully repaid a EUR 350 million ($409.1 million) bond early, demonstrating commitment to reducing its debt load.
Outlook and Confidence in Future Targets
The company reported a notable profit after tax of EUR 1,575.7 million, a substantial increase from EUR 5.9 million in the first half of 2024. Playtech remains confident in meeting its medium-term goals of achieving EUR 250-300 million ($292-350 million) in Adjusted EBITDA and EUR 70-100 million ($81.8-$116.9 million) in free cash flow.
CEO Mor Weizer emphasized the strong start Playtech has made by realigning as a predominantly pure-play B2B business. He affirmed his satisfaction with results that exceeded earlier expectations, attributing this success to robust performances across key markets. Weizer also reiterated Playtech’s solid positioning to reach ambitious medium-term growth objectives defined during the fiscal year 2024 results.
