Playtech (LSE:PTEC) has delivered a significant profit upgrade after first-half trading came in "significantly ahead of market expectations", driven by strong momentum in the United States and continued growth across Mexico, Colombia and select European markets.
The gambling technology company now expects adjusted EBITDA for the year ended 31 December to reach at least €270 million, against a mean analyst consensus of €219 million across seven analysts prior to this announcement.
First-half adjusted EBITDA is expected to exceed €155 million, with the Americas performance accelerating through May and June, partly fuelled by Playtech's partnership with Hard Rock Digital, which the company said has become one of its largest customers following an early-mover advantage in products based on Past Motor Racing results.
Management warned that second-half adjusted EBITDA will be lower than the first half, citing Hard Rock Digital revenues normalising to a "more sustainable level", the full-period absorption of increased UK Remote Gaming Duty effective from April, and upfront investment in a Brazil partnership expected to begin contributing to growth in 2027.
"Performance in the US, driven by our partnership with Hard Rock Digital, has been exceptionally strong," said chief executive Mor Weizer, adding that returns on recent investments are now accelerating and contributing "significantly to profitability and cash flow."
Playtech will report its interim results for the six months ended 30 June on 10 September.
