Playtech announced a 10% decline in full-year revenue for fiscal 2025, reporting €763.60 million for the period and falling short of the consensus estimate of €792.02 million compiled from eight analysts. The UK online gambling platform also recorded a material contraction in operating profitability, with Adjusted EBITDA decreasing 37% to €135.20 million, below the €175.13 million analysts had forecast.
Net income for the year reached €44.20 million, translating to earnings per share of €0.15. During the fiscal year the group completed the sale of Snaitech and returned cash to shareholders through a special dividend of €1.8 billion.
Management highlighted a reworked commercial arrangement with Caliente Interactive that altered the mix of income recognition. Under the new terms, B2B revenue was reduced while investment income rose as Playtech took an equity stake, effectively changing how revenue is recorded between the two companies.
Geographically, the company reported materially stronger performance in the US where revenue almost doubled, driven by broader partnerships and launches in additional states. Playtech said the Americas region maintained momentum overall, even as several markets grappled with tax-related headwinds.
By contrast, regulatory developments and newly implemented taxes in Brazil and Colombia weighed on revenue in Latin America. Playtech attributed part of its regional revenue decline to evolving tax frameworks across multiple jurisdictions in that region.
Looking forward, the company signalled that it expects Adjusted EBITDA for fiscal 2026 to exceed current consensus estimates. Playtech confirmed its existing medium-term financial targets of €250 million to €300 million in Adjusted EBITDA and €70 million to €100 million in Free Cash Flow.
Summary
Playtech missed analyst revenue and EBITDA expectations for FY25, reporting €763.60 million in revenue and €135.20 million in Adjusted EBITDA. Corporate actions during the year included the sale of Snaitech and a €1.8 billion special dividend. A revised Caliente agreement shifted revenue recognition toward investment income, while US revenue nearly doubled and Latin America was negatively affected by new taxes and regulatory changes. The company expects FY26 Adjusted EBITDA to surpass consensus and reiterated its medium-term targets for profitability and free cash flow.
Key points
- FY25 revenue fell 10% year-on-year to €763.60 million, below the €792.02 million consensus.
- Adjusted EBITDA declined 37% to €135.20 million, missing the €175.13 million analyst forecast; net income was €44.20 million, or €0.15 per share.
- Strategic and regional drivers: Snaitech was sold and a €1.8 billion special dividend was paid; a restructured Caliente agreement reduced B2B revenue but increased investment income, and US revenue almost doubled while Latin American revenue was hit by new taxes and regulatory changes.
Risks and uncertainties
- Regulatory and tax regime changes in Latin America - these shifts have already contributed to revenue declines in the region and could continue to affect revenues and margins.
- Contractual and revenue-mix changes from commercial restructurings - as illustrated by the Caliente agreement, shifts from B2B revenue to investment income can materially alter reported top-line and operating metrics.
- Market-specific tax headwinds in the Americas - although US revenue rose, the company noted tax pressures in several markets that could temper regional profitability.