Shares in online gambling platform Playtech (LON:PTEC) surged after the firm raised its FY26 earnings guidance. The group said it had an ‘excellent’ H1 and therefore FY EBITDA would be significantly above the current consensus.
‘Significantly ahead of expectations’
For the six months to end-June, Playtech said trading had been ‘significantly ahead of market expectations’ driven by an ‘excellent’ performance in the US. It also cited continued strength in the Mexican online gambling market and progress in European markets.
The firm had already flagged stronger-than-expected trading in the Americas at its AGM in May. CEO Mor Weizer said at the time the firm had made ‘an excellent start’ to 2026.
In today’s update, the company trading had accelerated through May and June. As a result, H1 adjusted EBITDA is expected to be over €155 million compared with €99 million last year.
While H2 EBITDA is expected to be lower than H1, for FY26 the firm now expects a total figure of €270 million. That compares with the current range of estimates of €205 million to €225 million and a mean of €219 million.
Gambling stocks aren’t our cup of tea, and the performance of stocks such as Entain (LON:ENT) and Flutter (LON:FLTR) reinforce that view. Entain is down 30% year-to-date while Flutter is down almost 50% year-to-date.
Platform stocks are a different story, however, as Playtech has demonstrated. Including today’s gains, the shares are up more than a third this year although they are still well below their April highs.
The firm says it’s in a ‘structural growth supercycle’ driven by the rapid expansion of regulated markets, particularly in the Americas. Therefore, as the leading B2B technology and content provider to over 200 operators it is uniquely positioned to benefit.
It also owns a portfolio of stakes in gambling companies worth over €1 billion, equivalent to its current market cap. In other words, if you buy the shares today you are getting the operating business thrown in for free.
Read the press release here: https://www.investors.playtech.com/
