Playtech Raises 2026 Earnings Forecast Above €300M

Playtech has raised its 2026 expectations after trading in the Americas helped the gaming technology group outperform forecasts between July and October. The company now expects annual adjusted EBITDA to exceed €300 million, compared with the previous analyst consensus of €279 million.

The update covers 1 July to 31 October. Playtech identified its US partnership with Hard Rock Digital as a major contributor. Its shares gained 2% to 377.00p following the announcement.

The revised projection exceeds the previous analyst estimate range of €271 million to €285 million. The average of €279 million reflects forecasts from seven analysts whose estimates had been updated since Playtech reported its first-half results. Two analysts with outdated projections were excluded.

Early PMR Launch Supports US Performance

Playtech’s investment in a product based on Past Motor Racing (PMR) results helped it establish an early position in the US market. It launched the product with Hard Rock Digital during the first half of 2026, with revenue remaining strong in the following six months.

The partnership contributed significantly to profitability and cash flow. Playtech also reported favourable conditions in Mexico and Colombia following the Men’s FIFA World Cup, supporting its wider Americas performance.

Competition in the PMR segment is expected to increase. Other third-party suppliers are entering the market, and Playtech anticipates that they will take a greater share of customer spending in 2027.

Peel Hunt raised its 2026 adjusted EBITDA forecast by 6% to €300 million following the stronger trading performance. The broker left its 2027 operating estimates unchanged, retained its Buy recommendation and maintained its 690.0p price target. It attributed the PMR product’s success to ‘astute investment by management’ and said its higher net cash forecast increased the likelihood of a return of capital to shareholders.

Brazil And Taxation Create Challenges For 2027

Playtech expects recent political and regulatory developments in Brazil to affect 2026 adjusted EBITDA over a three-month period. It believes it can absorb the impact this year. A continuing market shutdown could have a greater effect in 2027.

The company is also absorbing the full cost of the higher UK Remote Gaming Duty, which took effect in April 2026. The increased duty will affect a complete financial year in 2027, alongside higher taxation in other European markets.

CEO Mor Weizer said: “We have continued to deliver an excellent performance in 2026 to date, reflecting sustained momentum in regulated markets, notably the Americas. Performance in the US, driven by our partnership with Hard Rock Digital, has remained strong, contributing significantly to profitability and cash flow, while Mexico and Colombia have benefitted from tailwinds after the Men’s FIFA World Cup.

“Looking to 2027, we expect performance to reflect growing competition from third-party PMR suppliers in the US, political and regulatory developments in Brazil and the first full-year impact of increased Remote Gaming Duty in the UK. That said, 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.”