Playtech sees 2026 earnings above consensus, flags 2027 headwinds

Playtech PLC on Tuesday lifted its forecast for 2026 but warned that developments across the US, Brazil and the UK could impact next year's figures.

The gambling software provider said trading has been ahead of expectations between July and October, mainly driven by growth in the Americas. In the US, its partnership with Hard Rock Digital continued to perform well thanks to the launch of its Past Motor Racing product, a software that powers betting games with actual results from previous races. Mexico and Colombia benefited from increased activity following the men's Fifa World Cup held this summer.

The Douglas, Isle of Man-based company now expects adjusted earnings before interest, tax, depreciation and amortisation to be over EUR300 million in 2026, above company-compiled consensus, which now stands between EUR271 million and EUR285 million, with a mean consensus of EUR279 million. Last year's adjusted Ebidta was EUR197.0 million.

Current consensus sees adjusted Ebitda at EUR266 million in 2027. Chief Executive Mor Weizer warned that next year's performance is expected to reflect growing competition in the US, higher duties in the UK, and policy changes in Brazil.

Playtech said it benefited from being first to market Past Motor Racing in the US, but it flagged that growing competition from other third-party suppliers is expected to have a more material impact in 2027.

The company said the full-year effects of the increased Remote Gaming Duty in the UK, which became effective in April 2026, and higher taxation across Europe will also show in next year's accounts.

Additionally, Playtech said the impact of the online gambling shutdown in Brazil, which began in September, can be absorbed in 2026 but will affect next year's Ebidta, if it is not lifted.

Weizer added: "We remain confident in the underlying strength of the business and the significant opportunities ahead as we continue to expand our presence in regulated and regulating markets and work towards the top-end of our medium-term targets."

Playtech shares fell 0.5% to 366.66 pence on Tuesday in London.

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