Playtech, a global leader in gaming technology, recently released a positive trading update. The company expects its adjusted EBITDA for the fiscal year 2025 to reach at least 195 million euros, a figure significantly higher than the previously estimated range of 150 million to 187 million euros by analysts. The performance exceeded expectations, mainly due to strong growth in the Americas market, especially in the United States and Mexico. Despite actively divesting some businesses and facing new regulatory challenges during this period, its long-term investment in the Americas is finally beginning to accelerate into profits. The company's CEO was pleased with the performance at the end of 2025 and stated that selective investments will continue in regions with clear growth opportunities such as the Americas.
Performance Highlights: Growth Driven by the Americas Market
Playtech's report card is quite impressive. According to the early trading update, the company's performance in the second half of 2025, especially in the fourth quarter, was "strong," mainly due to the outstanding performance of the Americas market. More remarkably, this profit growth was achieved despite several adverse factors:
• Business Divestiture: In the first half of 2025, the company sold its Italian subsidiary Snaitech for approximately 2.3 billion euros, implementing its strategic transformation to become a pure B2B provider. The company also sold its German B2C business HappyBet.
• Joint Venture Agreement Changes: The terms of the joint venture with the operator Caliente targeting the Mexican market were amended in September 2024, leading Playtech to stop charging additional B2B service fees, resulting in a decline in revenue contribution from this joint venture in the first half of 2025.
Despite these "headwinds," the growth momentum in the Americas market was even stronger, successfully driving overall profits beyond expectations.
Strategic Adjustment: Focus on B2B and Regional Deepening
This performance also confirms the initial success of Playtech's recent strategic transformation. The company is firmly shifting from its past hybrid business model to focusing on providing technology solutions to operators as a pure B2B provider. Selling Snaitech and HappyBet exemplifies this strategy. Meanwhile, the company has been steadily investing in the Americas for many years, and it has now entered a period of reaping returns. The CEO stated that the return on investments in recent years has begun to "accelerate" and is reflected in profitability, allowing the company to enter 2026 with "good momentum." The company will allocate more resources to the United States and other markets in the Americas with growth opportunities.
Future Outlook: Optimistic Expectations Coexist with Tax Challenges
Despite being confident about growth, Playtech also admits to facing future challenges. One of the biggest "headwinds" comes from the UK market. The UK government has announced that from April this year, the remote gambling tax will be significantly increased from 21% to 40%, and from April 2027, the general gambling tax on remote betting will also rise from 15% to 25%. This will undoubtedly increase operating costs in the region.
However, Playtech remains optimistic about the medium-term outlook. The company has provided positive guidance, expecting the adjusted EBITDA to be between 250 million and 350 million euros in the medium term, with free cash flow projected to be between 70 million and 100 million euros. This indicates that management believes the momentum in core growth areas such as the Americas is sufficient to offset some of the regulatory pressures in other markets. How to maintain growth through precise regional layout and technological advantages in a globally tightening regulatory environment will be a core challenge for Playtech in the future. For insights into the strategic movements and financial performance of this global gaming technology giant, visit the PASA official website for professional analysis.
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