Playtech Reports €101 Million in Free Cash Flow in H1 2026 Following Restructuring

Playtech generated €101 million in free cash flow in the first six months of 2026 under the operational structure following the sale of Snaitech and the revision of the agreement with Caliente Interactive. The group reported that revenues from continuing operations reached €425.1 million in H1 2026, an increase of 10% compared to €387 million in the same period of 2025.

H1 2026 Results and Free Cash Flow of Playtech

The income statement showed a marked improvement in profitability in the first half. Adjusted EBITDA grew by 77%, reaching €162.5 million up from €91.6 million a year earlier, and the adjusted EBITDA margin rose to 38% from 24% before. The reported profit before tax was €113 million, after a loss of €58.8 million in H1 2025. The reported net profit amounted to €98.1 million, compared to a loss of €78.1 million in the previous period.

The cash result was the most visible change: free cash flow rose from €6.6 million in H1 2025 to €101 million in H1 2026. As of June 30, Playtech reported €39.2 million in net cash, compared to €28.5 million at the end of 2025.

B2B and Margins: Impact on Free Cash Flow

Most of the group's activity now operates through its B2B business. The B2B division generated €394.8 million in revenue, a year-on-year increase of 14%. Playtech estimated a like-for-like growth of 17% when excluding the effect of the revision of the agreement with Caliente Interactive in the comparison.

B2B adjusted EBITDA rose 75% to €128.1 million, while the division's costs decreased by 3% to €266.7 million. This combination raised the adjusted EBITDA margin of B2B from 21% to 32%. Regulated activity accounted for 84% of the group's revenue, and underlying B2B revenues from regulated markets increased by 21%.

SaaS contributed €69 million, a growth of 20%, and represented 17% of B2B revenue. The Live unit recorded an 8% increase as the company continued with table optimization measures.

Investments, Stakes, and Returns

Returns from Playtech's investment portfolio added €34.2 million to adjusted EBITDA, compared to €19.8 million a year earlier. The 30.8% stake in Caliente Interactive contributed €30.1 million in associate results. Hard Rock Digital paid €4.4 million in dividends, compared to €2.1 million the previous year.

The book value of Playtech's minority stake in Hard Rock Digital increased to €246.7 million from €178.8 million at the end of 2025. This value is more than three times the approximate investment of €80 million that Playtech made in 2023.

During H1, the company repurchased shares for €24.6 million, acquiring around 1.8% of its issued capital. Since September 2025, it has repurchased approximately 10% of the shares for nearly €100 million.

The accounts also included a full provision of €28.9 million against Playtech's guarantee on the NorthStar loan facility. Playtech indicated that, as of the date of the account's approval, no claims had been reported to Playtech plc or any subsidiary relating to Evolution.

Regional Growth and Key Operations

The regulated markets in the Americas (USA and Canada) recorded the largest regional increase: revenues rose 161% to €56.9 million. Playtech attributed much of this performance to games driven by Past Motor Racing with Hard Rock Bet in Florida and the expansion of its regulated footprint in the USA, including a launch in Connecticut that raised its presence to six states.

Fanatics introduced Playtech's online casino products in four states, while FanDuel expanded its relationship in additional regulated markets. DraftKings expanded its Live offering in Connecticut and bet365 added Live in Michigan.

B2B revenues in Latin America reached €99.9 million, a reported increase of 14% and an underlying growth of 29%, propelled by Mexico and Colombia. Caliente Interactive remained central in Mexico; in Colombia, revenues increased by more than 100% year-on-year, supported by the agreement with Wplay.

Playtech continued to invest in its operations in Brazil in preparation for a strategic partnership expected later in 2026. The company completed its Live Casino study in São Paulo and added local capabilities.

Europe excluding the UK recorded B2B revenues of €104.5 million, an increase of 2%; excluding one-off hardware sales from the previous year, growth would have been 10%. Playtech highlighted Spain and Poland among the markets that sustained regional performance.

UK, B2C and Outlook for the Second Half

The UK presented a different picture: B2B revenues fell 8% to €59 million, affected by the increase in Remote Gaming Duty and specific client changes. The tax rate rose from 21% to 40% in April 2026.

Remaining B2C operations generated €32 million in revenues, a decline of 22% from €41 million. B2C adjusted EBITDA improved to €200,000 after a loss of €1.5 million in the previous fiscal year. Sun Bingo and other B2C activities recorded €31.7 million in revenues, a decrease of 5%; Sun Bingo reduced revenues by €4.5 million year-on-year due to marketing cuts motivated by the tax increase.

HAPPYBET reduced revenues by 96% to €300,000, and its closure is expected to complete in 2026.

Management expects the adjusted EBITDA in the second half to be below that of the first half, as associated contributions from Florida and Hard Rock Digital return to more sustainable levels, along with the full impact of the higher tax rate in the UK. Nevertheless, Playtech maintained its forecast to exceed €270 million in adjusted EBITDA in 2026 and brought forward the expectation of reaching the upper end of the range of €250–€300 million and the free cash flow goal of €70–€100 million.

"Our balance sheet remains solid, and we are well positioned to invest as required and also return capital to shareholders," stated Mor Weizer.

What Investors and Providers Should Watch

The transformation towards a B2B-focused model and the monetization of stakes (Caliente Interactive, Hard Rock Digital) have been key in the leap in cash and margin. Suppliers and operators should closely monitor the execution of the partnership in Brazil and the full effect of the Remote Gaming Duty increase in the UK. For details on Playtech's B2B activity, the section B2B and regulatory implications appear in the coverage of regulation.