Playtech Plc (LON:PTEC), the leading platform, content and services provider in the online gambling industry, today announces its results for the six months to 30 June 2025.
Financial summary (from continuing operations unless otherwise stated)1
| Reported | Adjusted2 | |||||
| H1 25 | H1 247 | H1 25 | H1 247 | |||
| €’m | €’m | Change % | €’m | €’m | Change % | |
| Revenue | 387.0 | 429.7 | (10)% | 387.0 | 429.7 | (10)% |
| EBITDA3: | 12.9 | 99.3 | (87)% | 91.6 | 109.5 | (16)% |
| Operations | 4.0 | 99.1 | (96)% | 71.8 | 108.0 | (34)% |
| Investment income | 8.9 | 0.2 | n/a | 19.8 | 1.5 | n/a |
| Post-tax profit / (loss) | (78.1) | (55.2) | n/a | 16.6 | 18.8 | (12)% |
| Post-tax profit from continuing and discontinued operations | 1,575.7 | 5.9 | n/a | 93.1 | 92.3 | 1% |
| Diluted EPS | (25.4) €c | (18.0) €c | n/a | 5.4 €c | 6.2 €c | (13)% |
| Diluted EPS from continuing and discontinued operations | 512.4 €c | 2.0 €c | n/a | 30.3 | 30.3 | 0% |
| Net cash / (debt)6 | 77.1 | (225.5) | n/a | |||
Summary
· Completion of Snaitech sale with approximately €1.8 billion of proceeds paid to shareholders as a special dividend.
· Results reflect revised Caliente Interactive agreement and transition to a predominantly pure-play B2B business.
· Adjusted EBITDA of €91.6 million, consistent with the upgraded expectations from our August trading statement.
· B2B performance driven by solid underlying growth.
· Excellent strategic progress in core markets, including the Americas.
· Very strong balance sheet with a net cash position of €77.1 million as at end of H1 2025.
· On track to deliver FY 2025 Adjusted EBITDA ahead of expectations.
Divisional highlights
From this reporting period onwards, the Group reports under three distinct segments: B2B, Investment income, and B2C. Notably, EBITDA from operations reflects contributions from the B2B and B2C divisions.
B2B
· Revised agreement with Caliente Interactive came into effect on 31 March 2025, with Playtech now having a 30.8% equity holding in Caliente Interactive. Caliente Interactive business continues to be ideally placed to deliver significant value for Playtech over the coming years.
· B2B revenues declined 9% in H1 2025 to €347.6 million (H1 2024: €382.2 million), while B2B Adjusted EBITDA from operations declined 35% to €73.3 million in H1 2025 (H1 2024: €112.3 million). This primarily reflected the revised Caliente Interactive arrangements. Excluding the impact of the revised arrangements5:
– B2B revenues grew 3% (6% on a constant currency basis) in H1 2025 versus H1 2024, mainly due to strong growth in the US.
– B2B Adjusted EBITDA from operations grew 3% in H1 2025 versus H1 2024, with good cost control partly offset by increased investments in the US and Brazil, as well as FX and other headwinds.
· Significant progress executing our US and Canada strategy:
– Revenue across the US and Canada of €21.8 million, up 64% versus H1 2024.
– Successful launches in 2024 with major operators translated into strong revenue in H1 2025.
– Entry into West Virginia, our fourth regulated iGaming state.
– Continued investment in people, with US headcount growing to more than 500 as at the end of H1 2025.
– Plans to invest in further studio capacity in H2 to meet growing demand for our Live Casino offering.
– Fair value of our equity investment in Hard Rock Digital increased to €150.3 million (FY 2024: €141.0 million) due to the performance of the business.
· Regulated Latin America revenues declined 32% to €87.7 million in H1 2025 (H1 2024: €128.3 million) as impacted by the revised Caliente Interactive agreement and the Colombian VAT position related to Wplay, partly offset by Brazil moving into regulated markets, having previously been included in unregulated markets.
· Live continues to see strong demand across key geographies:
– Revenue up 9% in H1 2025 versus H1 2024, with the US and Canada seeing particularly strong growth.
– MGM Resorts International partnership expanded with the launch of 7 tables in H1 in the Live studio on the floor of the MGM Grand in Las Vegas
· SaaS revenues grew 73% to €57.3 million in H1 2025, reflecting strong momentum in multiple countries across a broad and expanding customer base.
Investment income3
· Adjusted investment income increased to €19.8 million (H1 2024: €1.5 million) due to the recognition of our share of income of €20.3 million from Caliente Interactive in H1 2025 under the revised agreement.
· Post period-end, Caliente Interactive declared and paid its first dividends, amounting to $20.4 million.
· Dividends received from Hard Rock Digital (HRD) totalled €2.1 million in H1 2025 (H1 2024: €1.6 million).
B2C
· Revenue within the B2C division declined to €41.0 million (H1 2024: €49.5 million). Adjusted EBITDA losses narrowed from €4.3 million in H1 2024 to €1.5 million in H1 2025.
· HAPPYBET (included within continuing operations) delivered Adjusted EBITDA losses of €2.3 million (H1 2024: loss of €6.6 million), with losses narrowing due to the closure of the Austrian business in H2 2024 and the ongoing winding down of the German business.
· Sun Bingo and Other B2C saw revenue decline 17% from €39.9 million in H1 2024 to €33.2 million in H1 2025, reflecting the impact of enhanced regulatory requirements introduced in H2 2024. As a result, Adjusted EBITDA decreased to €0.8 million (H1 2024: €2.3 million).
Financial activity
· Reported profit after tax in H1 2025 was €1,575.7 million (H1 2024: €5.9 million), the increase due to recognition of the profit on disposal of Snaitech of €1,613.1 million.
· We redeemed the remaining €150 million of the €350 million bond due 2026, strengthening the Group’s balance sheet and providing a strong platform for future growth.
· Group net cash position as at 30 June 2025 of €77.1 million (31 December 2024: Net debt of €142.8 million).
Corporate activity
· Revised Caliente Interactive agreement came into effect on 31 March 2025.
· The sale of Snaitech to Flutter Entertainment plc completed on 30 April 2025 for a total cash consideration of approximately €2.3 billion, with approximately €1.8 billion distributed to shareholders via a special dividend.
· Agreement reached with German operator, pferdewetten.de AG, to allow pferdewetten to negotiate the transfer to them of franchise partners from HAPPYBET Germany.
· John Gleasure assumed the role of Non-executive Chairman of the Board after Playtech’s 2025 annual general meeting in May, replacing Brain Mattingley.
Current trading and outlook
· Solid start to H2 2025 with normal seasonality.
· Plans to increase investment for growth in the US and Brazil in the second half of 2025. We remain mindful of the headwinds in Brazil and Colombia flagged in August’s trading statement.
· Despite this, we are on track to deliver FY 2025 Adjusted EBITDA ahead of expectations.
· The Company is confident in its ability to deliver its medium-term targets set out at the FY 2024 results:
– Adjusted EBITDA4 target range of €250 million – €300 million
– Free Cash Flow4 target range of €70 million – €100 million
· Given the exciting growth opportunities ahead, the Board remains very confident in Playtech’s ability to execute on its strategy as a predominantly pure-play B2B business with investments in some of our key partners.
Mor Weizer, CEO, said:
“These results show the strong start Playtech is making in its transition back to its roots as a predominantly pure-play B2B business. I’m very pleased that we have reported earnings ahead of expectations from earlier in the year, reflecting the strong performance across our key markets.
Our revised agreement with Caliente Interactive, which completed in March, sets both parties up for continued success in the future. Caliente Interactive paid its first dividends in the second half of the year following a period of strong performance. America remains a core priority given the significant opportunities in the region, and Brazil’s transition to a regulated market represents a key milestone in a high-potential market. We continued to accelerate the execution of our US strategy, with last year’s successful launches translating into strong revenue growth and significant expansion with DraftKings. Demand for our Live offering also continues to grow, with the launch of our innovative partnership with MGM Resorts complementing our existing studio offering.
The second half of the year has started well, and we are on track to be ahead of expectations for the year and well placed to achieve the ambitious medium-term growth targets we set out at the FY 2024 results. The strength of our balance sheet will allow us to increase investment in the US and Brazil in H2 to drive continued growth.
We continue to see significant growth opportunities in the market for Playtech, and I am confident that the combination of our market-leading technology and talented people puts us in a strong position to deliver on this exciting potential.”
1 Totals within tables in this statement may not exactly equate to the components of the total, due to rounding.
2 Adjusted numbers reflect certain non-cash and one-off items and also reflect how management measures the performance of the Group as well as material reorganisation and acquisition/disposal-related costs. The Board of Directors believes that the adjusted results more closely represent the consistent trading performance of the business. A full reconciliation between the actual and adjusted results is provided in Note 10.
3 EBITDA is separated into EBITDA from operations and EBITDA from investment income. EBITDA from operations includes only B2B and B2C segments, while investment income includes our share of income from associates, notably from our 30.8% shareholding in Caliente Interactive, and dividends received from equity investments (primarily from Hard Rock Digital).
4 Definition of medium-term target metrics:
· Adjusted EBITDA target includes our share of income from associates, notably from our 30.8% shareholding in Caliente Interactive, as well as dividends received from equity investments.
· Free Cash Flow is defined to be Adjusted EBITDA less IFRS 16 lease costs, capital expenditure, capitalised development costs, net financing costs, cash taxes paid, and takes into account any differences between dividends received and amounts recognised on the P&L in respect of associates.
5 Caliente Interactive impact removes the additional B2B services fee from Caliente Interactive in H1 2025 and H1 2024 within revenue as well as direct costs in EBITDA, to reflect the terms of the revised agreement.
6 Net cash / (debt) excludes IFRS 16 lease liabilities.
7 Comparative information has been re-presented due to: the Group now having discontinued operations (Note 8), prior period errors (Note 20) and a change in accounting policy (Note 4). The re-presented consolidated income statement (both actual and adjusted) can be found in Note 21.
Conference call and presentation
A presentation on the earnings will be held today in person at 9.00am at the Chartered Accountants Hall, 1 Moorgate Place, EC2E 6EA, and accessible via a live audio webcast using this link:
https://www.investis-live.com/playtech/6894963e6c0d7e0031607604/pyev
Analysts and investors can also dial into the call using the following details:
United Kingdom (Local): +44 20 3936 2999
United Kingdom (Toll-Free): +44 808 189 1058
Global Dial-In Numbers
Access Code: 928178
The presentation slides will be available today from 8.30 am at: http://www.investors.playtech.com/results-centre/presentations.aspx
