Playtech (LON:PTEC) executives told investors the group completed a “strategic reset” in 2025, reshaping the company into a more focused B2B technology business after the sale of its Italian consumer arm Snaitech and revisions to its long-running relationship with Caliente Interactive. Management said the year “went better than we’d expected,” highlighted by adjusted EBITDA of EUR 197 million, which they described as around 20% ahead of market expectations at the start of 2025.
Chief Executive Mor Weizer said the performance was supported by strong momentum in the Americas and “material investment income” from Playtech’s equity stakes, particularly in Caliente Interactive and Hard Rock Digital. The group ended 2025 with a net cash position of EUR 29 million, which management said provides flexibility to invest in growth and consider additional shareholder returns.
Caliente agreement rebases revenue, shifts income into investment line
Chris said this change “rebases our reported revenue and affects both adjusted EBITDA and free cash flow,” making year-on-year comparisons particularly noticeable in 2025 but expected to normalize going forward. He also noted that regulatory headwinds in Colombia and Brazil affected underlying revenue and EBITDA, though the group still delivered strong performance in the Americas.
Management said the vast majority of EUR 62 million of adjusted EBITDA from investment income came from Caliente Interactive and Hard Rock Digital, underlining what executives described as the value of Playtech’s strategic investments.
B2B trends: Americas strength offsets regulatory and U.K. pressures
Reported B2B revenue was EUR 688 million, down year-on-year because of the revised Caliente accounting. On an underlying basis, Playtech said regulated B2B revenue grew 6%, driven by momentum in the Americas.
- U.S. and Canada: Delivered over 70% growth in constant currency, driven by wallet share gains with tier-one operators and strength across live, casino, and the PAM+ verticals.
- Latin America: Underlying revenue grew 8% despite “Colombia VAT headwinds” and what management called Brazil’s “particularly stringent transition” into regulation.
- Europe ex-U.K.: Growth in Poland and Spain was cited, partially offset by the impact of higher hardware sales in the prior year.
- U.K.: Impacted by a tougher regulatory backdrop and customer-specific changes, including a previously disclosed insourcing of self-service betting terminals by one operator.
- Rest of world: Posted “strong double-digit growth,” led by South Africa.
Executives also said revenues from unregulated markets declined as expected due to Brazil’s reclassification into the regulated reporting segment.
Costs, B2C footprint, and balance sheet after Snaitech sale
Chris said B2B costs increased modestly in 2025 as Playtech continued investing in areas with the strongest expected long-term returns. He pointed to investments in the live vertical, including increased capacity in U.S. studios, new tables in Peru, and the opening of a live studio in São Paulo. The company also absorbed higher G&A expenses, primarily due to certain non-recurring costs, professional and advisory fees, and some legal expenses.
Following the Snaitech sale, B2C operations are now a “much smaller” part of the group. Playtech described Happybet as non-core and said it took steps to wind down the business, which is “nearing completion.” Management also said it launched an operational review of Sun Bingo in response to changes to the U.K. gambling tax framework, to assess the business’s long-term prospects.
On the balance sheet, the company said it began 2025 with net debt of EUR 143 million. Major cash movements included:
- EUR 2.3 billion of proceeds from the Snaitech sale
- EUR 1.8 billion paid as a special dividend to shareholders
- Repayment of the remaining EUR 150 million of a bond maturing in March 2026
Playtech said it now has a single EUR 300 million bond maturing in June 2028. The company also repurchased 8.3% of its issued equity capital in the second half for EUR 77 million at an average price of £2.67 per share, which management said should limit future dilution from employee share plans.
Executives also flagged remaining liabilities related to the Snaitech sale totaling about EUR 90 million, with around EUR 70 million to be settled in 2026 and EUR 20 million in 2027. Including those outflows would imply a pro forma net debt position of around EUR 60 million, the company said.
2026 outlook: EBITDA guide raised; U.S. profitability and CapEx plans
Management said Playtech had a “very strong start” to 2026, particularly in the Americas, with sustained demand in the U.S. and Mexico and a healthy pipeline of launches. Chris said the company now expects to deliver full-year 2026 adjusted EBITDA ahead of current market expectations, despite ongoing regulatory headwinds in some markets.
The company guided to 2026 CapEx (including capitalized development) of EUR 90 million to EUR 100 million, up from 2025 due to expansion plans in Brazil. Playtech expects an effective tax rate of roughly 25% to 28%.
On profitability in the U.S., management said the business improved faster than previously expected. Chris stated that while prior guidance was to reach U.S. profitability by the end of 2026, Playtech now expects the U.S. operation to be profitable for 2026 as a whole, “including on a cash basis.”
Executives also reiterated medium-term targets of EUR 250 million to EUR 300 million in adjusted EBITDA and EUR 70 million to EUR 100 million in free cash flow, citing levers including growth in regulated markets, benefits from structured agreements and revenue share models, cost efficiency, and addressing underperforming units.
During the Q&A, management declined to add detail on Evolution-related litigation beyond an earlier RNS from October, stating Playtech had not been added to any case and would not take further questions due to legal and confidentiality constraints. They also discussed Brazil as a major long-term opportunity despite 2025 regulatory challenges, and described Caixa as a potentially significant partner if an agreement is reached, noting Playtech had won a tender but could not provide a timeline.
On AI, Weizer said Playtech has used machine learning for years and is expanding AI tooling and governance. He said the company has not quantified cost savings yet and is focused more on improving productivity—such as increasing game development output—than on reducing headcount. He added that regulated market requirements and Playtech’s long history of customer data were key factors in how the company views AI-driven product development and competition.
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.
