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(Sharecast News) - Gambling software maker Playtech said it expected annual earnings to be "significantly" above estimates after a strong performance in the first six months of the year.
The company now expects adjusted EBITDA for the year to December 2026 to be at least 270m compared with analyst estimates of 205m - 225m.
First half earnings were driven by the US and continued strength in Mexico, Colombia and European markets. The performance in the Americas accelerated through May and June. Playtech now expects H1 2026 adjusted core earnings to be more than 155m.
Playtech said it expected second half earnings to be lower than H1 "for several reasons", including investment in developing new products and the impact of higher UK gaming taxes.
"Following an extended period of investment developing an innovative product based on Past Motor Racing (PMR) results, Playtech benefitted materially from being first to market with Hard Rock Digital with PMR," the company said in a trading statement.
"Hard Rock Digital has become one of Playtech's largest customers and is expected to remain so going forward, albeit Playtech's revenue with the operator is likely to continue at a lower but more sustainable level in H2 2026 and into 2027."
"Elsewhere, the company has been investing into a significant partnership in Brazil, ahead of expected signing and launch, which is likely to begin contributing to growth in 2027."
Reporting by Frank Prenesti for Sharecast.com
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