26th Mar 2026 10:57
(Alliance News) - Playtech PLC on Thursday reported weaker performance in 2025, but doubled down on the optimistic view it shared in a trading update last month.
The Douglas, Isle of Man-based gambling software company's shares fell 7.4% to 331.50 pence on Thursday morning in London, and are down 55% over the past year.
Playtech booked an annual pretax loss of EUR128.6 million, widened from EUR9.4 million in 2024.
Revenue fell 10% to EUR763.6 million from EUR848.0 million on-year. Adjusted earnings before interest, tax, depreciation and amortisation declined to EUR197.0 million from EUR217.5 million.
This was in line with guidance updated in February, when Playtech estimated adjusted Ebitda of at least EUR195 million, "significantly" above consensus, which Playtech put at EUR177 million.
The result is still less than half the EUR480.4 million adjusted Ebitda Playtech reported in 2024. It has since restated 2024's result to reflect changes in its accounting policy.
On a reported basis, the company swung to an Ebitda loss of EUR5.7 million from profit of EUR127.2 million, as restated for 2024.
It attributed the 2025 downturn to revisions in its software and services agreement with Caliente Interactive Inc, an online sports betting company targeting the Mexican market.
As of March 2025, Playtech no longer receives an additional business-to-business services fee from Caliente, which it had previously recorded as revenue, but instead receives income from associates, reported under adjusted Ebitda, via its 30.8% equity holding.
The company sees this new agreement supporting "future growth, driving meaningful investment income alongside ongoing operating revenue".
It stressed that underlying software fees from Caliente "grew strongly" in 2025.
Playtech also maintained that its "key growth markets in the Americas performed ahead of expectations" and that it had made an "excellent start to 2026".
The company forecast the new year's adjusted Ebitda "ahead of current consensus expectations despite regulatory headwinds in many markets".
It backed its medium-term targets of EUR250 million to EUR300 million in adjusted Ebitda and EUR70 million to EUR100 million in free cash flow. FCF fell to EUR29.5 million in 2025 from EUR73.1 million on-year, due to the revised Caliente agreement.
Chief Executive Mor Weizer called 2025 "a year of significant transition for Playtech, as we completed the sale of Snaitech and returned to our roots as a leading, global, predominantly pure-play B2B business."
The CEO continued: "I'm really pleased to see our efforts in the US paying off, and we will continue to invest to capitalise on the significant opportunities ahead in this huge market. Our position in Latin America also strengthened, supported by the revised agreement with Caliente, which is performing well and further enhances our position in Mexico."
Weizer concluded: "The strong momentum we saw in 2025 has carried over into the start of 2026, particularly in the Americas. We remain confident in achieving our ambitious medium-term targets and see exciting opportunities for the group across our markets."
By Holly Munks, Alliance News reporter
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