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(Sharecast News) - Playtech said on Tuesday that full-year profit was set to be ahead of analysts' expectations following better-than-expected trading from July to the end of October, driven by a continued strong performance in the Americas.
For the year to the end of December, the company now expects adjusted earnings before interest, tax, depreciation and amortisation of over 300m, versus analyst expectations 279m.
Playtech said that following an extended period of investment developing an innovative product based on Past Motor Racing (PMR) results, it has benefitted "materially" from being first to market with Hard Rock Digital with PMR in the first half and revenues continued to perform strongly in H2.
"However, as previously flagged, the introduction of other third-party PMR suppliers is underway and is now expected to have a more material impact on Playtech's wallet share into 2027," it said.
Playtech also said that following recent political and regulatory developments in Brazil, it expects to be able to absorb the three-month impact on adjusted EBITDA in 2026, with a more significant impact expected in 2027 should the existing market shutdown not be lifted.
In addition, Playtech said it continues to absorb the full impact of increased remote gaming duty in the UK, which came into effect in April.
Chief executive 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."
At 0830 GMT, the shares were up 3.8% at 382.20p.
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