Shares in Playtech (PTEC) rallied 3% to 289p after the gaming industry technology provider upgraded FY25 guidance on a stronger-than-expected Americas performance. The FTSE 250 firm’s adjusted EBITDA is now expected to be ‘at least €195m’. That is significantly ahead of the mean consensus estimate of €177m.
| Share price: 289p (+3%) | PE: 18.1x |
| Market cap: £949m | Yield: n/a |
Calling out its strong prospects in regulated markets, notably the Americas, Playtech remains confident in its FY26 outlook. The firm also reiterated its medium-term targets of €250m-to-€300m of adjusted EBITDA and free cash flow in the €70m-to-€100m range.
Playing to win
Playtech delivers software, services, content and platform technology across the gambling industry’s most popular product categories. These include sports betting, bingo, poker and casino.
Its technology is sold on a business-to-business (B2B) basis to online and retail gambling operators, as well as land-based casino groups and government sponsored entities such as lotteries.
Led by CEO Mor Weizer, Playtech enjoyed strong trading in the second half of calendar year 2025 driven by positive Q4 performances in the US and Mexico.
Playtech ‘remains mindful’ of ongoing sector headwinds including scheduled gambling tax hikes in markets including the UK. In fact, the company expects an FY26 EBITDA impact of ‘up to high-teens millions of euros’ from the gambling tax rises outlined in Rachel Reeves’ 2025 Autumn Budget.
Upside Stateside
Nevertheless, the positive Q4 revenue trends seen in the Americas mean Playtech enters 2026 with ‘good momentum’ and returns on the company’s investments in recent years are accelerating.
As former Oracle (ORCL:NYSE) mover and shaker Weizer commented: ‘We have been steadily investing across our business in the Americas for a number of years, and I’m particularly pleased with our recent progress in the US, as the benefits of our hard work start to accelerate and flow through to profitability.’
Read the press release here: https://www.investors.playtech.com/regulatory-news
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