Playtech has had four strong months in the U.S. and Mexico to start off this year. It continues to exceed expectations in these two strong markets. Performance in the U.S., in particular, has been encouraging. Returns on the company’s investments in recent years have kept accelerating and contributing to its profitability. It is also experiencing continuing strength in certain European markets.
Overcoming ongoing headwinds in the sector
Despite the ongoing headwinds in the sector, Weizer believes Playtech is well-positioned for any market opportunities that lie ahead. Its expansion is in regulated markets with technology that is highly scalable.
Playtech has good partner relationships and a diversified footprint. One of its key partnerships is with betPARX Casino, whose app and website are powered by its IMS platform. Revenue in the U.S. nearly doubled because of Playtech’s partnerships. It will continue to invest to capitalize on the opportunities that present themselves.
Impact of Caliente deal
Playtech’s CEO Mor Weizer drew attention to the Caliente Interactive venture in Mexico that came into effect in March last year. He said that this summer the FIFA World Cup will provide an opportunity to improve its market position. These comments suggest concerns over the revised agreement with Caliente are fading.
The revisions hurt revenue and adjusted group EBITDA. Reported revenue was down 10% year-on-year, and adjusted group EBITDA was down 9%.
Both underlying revenue and adjusted EBITDA were impacted by regulatory headwinds in Brazil and Colombia. However, the group performed strongly overall in the Americas, with both Caliente and Hard Rock Digital contributing significantly to investment income.
Under the revised agreement with Caliente, Playtech won’t receive a B2B services fee but will receive income via a 30.8% equity holding in the business. The new agreement provides a strong foundation for future growth and will drive investment income alongside operating revenue.
A year of transition in 2025
Last year was a year of transition for Playtech. The company completed the sale of Snaitech for €2.3 billion, leaving Playtech with a net cash balance of €28.5 million at the end of the year. At the end of 2024, its net debt was almost €143 million. Following the sale of Snaitech, Playtech distributed a special dividend of €1.8 billion to its shareholders.
Following the sale, Playtech’s B2C operations represent a much smaller part of the group. The company is returning to its roots as a leading B2B technology business. The company’s focus on B2B technology, particularly in the live casino segment, is driving significant growth and streamlining its operating efficiency.
Ian Penrose steps down from the board
Ian Penrose is stepping down from the Playtech board but will still have input until Playtech posts its FY26 results. He will function as a non-executive director and senior independent director, also staying on as chairman of the audit and risk committee. Penrose has played an invaluable role in the transition since his appointment in 2018, such as in online business growth.
America’s momentum drives confidence
Taking away the Caliente effect, B2B revenue from regulated markets grew 6%. Revenue across North America and Canada grew 71% year-on-year in constant currency. Playtech is now operating in six states where iGaming is regulated. It typically partners with local companies ahead of regulation and this approach has proved to be very successful. Playtech launched in West Virginia and Delaware in 2025 and in Connecticut in early 2026. It continues to invest in expansion by increasing its capacity in its U.S. studios.
Analysts predict that Playtech will be profitable this year, supporting the optimism of management. Playtech executives emphasized the strategic shift back to a B2B-focused model and the successful integration of AI capabilities across business segments. The Americas segment continues to drive growth despite the impact of Trump’s policies on the US economy this year.
The volatility of the market and macroeconomic pressures could have some impact on performance this year. The transition from B2C to B2B could also present the company with some operational challenges. Playtech is committed to compliance and strategic investments in high-growth markets and has a portfolio of valuable assets. It is on track to deliver 2026 full-year adjusted EBITDA ahead of market expectations and continues to make progress towards its financial targets.
