Playtech Sees 573% Surge in EBITDA as Hard Rock Digital Deal Lifts H1 2026 Results

Playtech has reported a dramatic 573% year-on-year jump in its first-half 2026 EBITDA, reaching €86.8 million. The increase, attributed to outsized returns from its investment in Hard Rock Digital and strong results from Americas operations, put earnings ‘significantly ahead of analyst expectations’. However, the UK business showed weakness in both B2B and B2C lines, underscoring the contrasting fortunes across Playtech’s portfolio.

Reported and Adjusted EBITDA: Hard Rock Digital Propels Growth

The London-listed supplier disclosed adjusted EBITDA of €162.5 million for H1 2026, a 77% increase from €91.6 million the previous year. Reported post-tax profit swung from a €78.1 million loss to a €98.1 million profit. Revenue climbed 10% to €425.1 million. The change in outlook was largely tied to Playtech’s equity interest in Hard Rock Digital, secured for $85 million in March 2023. Management values this stake at €246.7 million ($281.5 million), implying an enterprise value for Hard Rock Digital of roughly $14 billion if Playtech indeed holds a 2% share.

Americas Outperform: Hard Rock Bet and PMR Games Drive Results

B2B revenue climbed 14% to €394.8 million, with underlying EBITDA for the segment up 75% to €128.1 million. The United States, together with Canada, delivered a revenue increase of 161%. Executives attributed this outsized growth to Past Motor Racing (PMR) games, offered through Hard Rock Bet in Florida, which functionally mimic slots and allow the state’s monopoly operator to differentiate. Playtech warned, though, that “this rapid growth is due to normalise at a more sustainable level in H2.”

In Latin America, revenue rose 29%, led by growth in Mexico and Colombia. Playtech’s equity interests in Caliente Interactive and Wplay in those respective markets played a central role in these gains.

UK Revenue Falls Amid Regulatory and Operational Shifts

Playtech saw B2B revenue from the UK decline 8%. Management linked this drop to both ‘certain customer changes’ and a major increase in remote gaming duty, which leapt from 21% to 40% as of 1 April. The B2B revenue for the market fell to €59 million. They indicated that retail operators had opted to in-source self-service betting terminals, reducing supplier demand.

On the B2C side, brands including Sun Bingo posted a 22% decrease in revenue, now at €32 million, reflecting both the wind-down of the HAPPYBET brand in Germany and tax-driven decline in UK player activity. Playtech described the B2C portfolio as “an area of lower strategic focus”, stressing the sale of Snaitech to Flutter for over €2 billion in 2025.

"Playtech has delivered a first half significantly ahead of our expectations at the start of the year, demonstrating the strength of our technology, the quality of our customer partnerships and the disciplined execution of our strategy." — Mor Weizer, Playtech CEO

The company pointed to a “material deterioration of the long-term profitability outlook” for Sun Bingo as higher taxes and shrinking active player numbers bite.

Stake in Hard Rock Digital: Strategic and Financial Implications

Playtech’s $85 million investment in Hard Rock Digital is now valued at $281.5 million according to management. This valuation, based on an assumed 2% stake, suggests the US online sportsbook has reached an enterprise value of $14 billion, underscoring the impact strategic minority positions can have on supplier results. The company remarked that the success of PMR games powered by its technology was the central driver for this valuation premium over the past half-year.

Other Developments: Legal Proceedings and Outlook

This week, Playtech’s protracted legal dispute with Evolution surfaced again as the Spectrum Report commissioned by Evolution came to light in New Jersey. Playtech asserts the findings “corroborate fundamental aspects” of previous investigations conducted by Israeli firm Black Cube.

Chief executive Mor Weizer emphasised ongoing efforts to deepen customer relationships, expand into regulated and regulating markets, and continue product and technological investment—including further use of artificial intelligence.

Playtech shares traded flat at 399p in early trading following the announcement, indicating investor skepticism as benefits from the Americas were weighed against UK declines and ongoing legal questions. The group continues to present B2C as non-core, focusing future growth ambitions on its technology and B2B business internationally.