Playtech plc

For H1, group revenue was EUR 387 million, down 10% year on year, and adjusted EBITDA was EUR 91.6 million, ahead of consensus expectations prior to the August trading update. B2B revenue declined 9% to EUR 348 million, B2C revenue declined 17% to EUR 41 million, and B2C adjusted EBITDA loss narrowed from EUR 4.3 million to EUR 1.5 million. On an underlying basis, adjusted EBITDA grew 5% year on year; excluding the Caliente Interactive impact, group revenue was flat. The company ended H1 with net cash of EUR 77 million, after receiving just over EUR 300 million of net proceeds from Snaitech, though pro forma for outstanding Snaitech liabilities it would have had slight net debt of EUR 15 million. Guidance-wise, Playtech said it is on track to deliver full-year 2025 adjusted EBITDA ahead of expectations, now expects full-year CapEx of EUR 80 million to EUR 90 million, and kept its effective tax rate guidance at 25% to 28%. It also reiterated medium-term adjusted EBITDA of EUR 250 million to EUR 300 million and free cash flow of EUR 70 million to EUR 100 million.

Mor Weizer framed H1 as a milestone period that reshaped Playtech into a pure-play B2B company, pointing to the Snaitech sale and the revised Caliente Interactive agreement as the key structural changes. He emphasized growth in the Americas, especially the U.S. and Brazil, and said Playtech has laid foundations for significant medium-term growth through regulated markets, Live Casino, and structured agreements. His tone was confident but measured, especially on Brazil and U.S. monetization, where he repeatedly stressed long-term opportunity while avoiding overpromising near-term numbers.

Chris McGinnis focused on the mechanics behind the financial beat: H1 revenue of EUR 387 million, adjusted EBITDA of EUR 91.6 million, and underlying EBITDA growth of 5% despite a 10% reported revenue decline from the Caliente change. He highlighted that free cash flow was affected by the timing of USD 20 million of Caliente dividends received after period end, and that Playtech ended with net cash of EUR 77 million after the Snaitech proceeds, while noting more than EUR 90 million of Snaitech-related liabilities still outstanding. He also gave forward detail on capital spending, cutting 2025 CapEx guidance to EUR 80 million to EUR 90 million from EUR 90 million to EUR 100 million, and said leverage comfort is around 1x to 2x net debt to EBITDA over time.

Analysts pressed on the U.S. timeline to profitability, sweepstakes exposure, leverage, Brazil market share, Caliente expansion, and what KPI disclosure might look like as Playtech shifts back toward software and services. Management said U.S. profitability could be 18 to 24 months away only if expansion stopped, but under the current investment pace it is likely a few years away because demand keeps requiring more studio build-out. On sweepstakes, management said exposure is immaterial at roughly 1% of group revenue and confirmed those revenues are booked in unregulated revenue; on leverage, CFO said 1x to 2x net debt to EBITDA is the level they would be comfortable operating at over time.