Playtech reported a 10% decrease in revenue for the first half of its 2025 fiscal year, driven largely by changes to its agreement with Mexico-focused operator Caliente regarding their Caliplay joint venture. During the period ending 30 June, Playtech recorded revenues of €387 million, a drop from the €429.7 million seen in the first half of 2024.
The modifications to the Caliente agreement led to a 9% reduction in Playtech’s B2B revenue, bringing it down to €347.6 million as the company ceased to receive an additional fee for B2B services. This contraction was reflected in the joint venture’s revenue decline during the first half.
The revised agreement between Playtech and Caliente, announced in September 2024, marked the conclusion of a disagreement between the two firms, with Playtech holding a 30.8% stake in Caliplay from 1 April this year. Excluding the influence of this revised agreement, Playtech’s B2B revenue actually grew by 3% on a year-on-year basis. The company insists that the joint venture remains “well-positioned to create substantial value” for its group over the medium term.
Playtech CEO Mor Weizer expressed optimism about the future, stating, “Our revised agreement with Caliente Interactive, finalized in March, positions both parties for continued success going forward. Caliente Interactive began distributing its first dividends in the second half of the year after a period of strong performance.”
The impact of the Caliente agreement was most apparent in Latin America, where B2B revenue saw a significant decline of 32%, falling to €87.7 million. In the UK, B2B revenue dropped 3% to €64.2 million. While Playtech experienced growth across new and existing licensees, it faced a decrease in earnings from an operator that shifted to insourcing their self-service betting terminals.
Conversely, Europe presented a more positive scenario, with revenue increasing by 4% to €102 million. This rise was chiefly attributed to the company’s strengths in Poland, Spain, and Switzerland. Further, Playtech highlighted its ongoing efforts to expand its product offerings across European markets. Revenue from the rest of the world climbed 27% to €6.6 million.
In North America, Playtech experienced notable growth, with revenue surging 64% to €21.8 million. In the US specifically, revenue more than doubled, spurred by increased wallet share with current licensees and successful launches with new operators in 2024. Playtech went live with several major brands during the year, including DraftKings, FanDuel, and Delaware North.
In a strategic shift towards B2B operations, Playtech concluded the sale of Snaitech to Flutter Entertainment for approximately €2.3 billion, aligning with its plan to transform into a pure-play B2B supplier. This strategy also included the sale of HappyBet on 28 May to NetX Betting, a subsidiary of Pferdewetten AG, just two months after the sale process began.
Due to these disposals, Playtech’s H1 B2C revenue amounted to €41 million, a 17% decrease year-over-year. As HappyBet was sold partway through H1, Playtech recorded only €7.8 million from this business. The remaining €33.2 million of B2C revenue stemmed from Sun Bingo and other B2C activities, marking a 17% decrease from the previous year. Playtech attributed this decline to heightened regulation, including financial vulnerability checks in the UK, which led to a reduction in overall player activity.
Despite the decrease in recognized revenue, Weizer emphasized what he viewed as a “strong” performance in H1. He noted that Playtech’s transition “back to its roots” as primarily a B2B business would prove advantageous in the long run. “We continue to observe significant growth opportunities for Playtech in the market,” he said. “I am confident that our market-leading technology and talented workforce put us in a strong position to capitalize on this exciting potential.”
On the earnings front, Playtech reported an EBITDA of €12.9 million, a sharp decline from €99.3 million in 2024, although adjusted EBITDA was €91.6 million, down 16% from the previous year but within expectations. The pre-tax loss for the period reached €58.8 million, while the post-tax loss from continuing operations was €78.1 million. However, when accounting for €1.65 billion in profit from continuing operations, largely from the Snaitech sale, Playtech achieved a substantial net profit of €1.58 billion, as opposed to just €5.9 million in 2024.
After adjusting for one-off items, including the sale of Snaitech, the net profit was €93.1 million, slightly above €92.3 million from the previous year.
Looking ahead to the second half of the year, Playtech reported a “solid” start to H2 with typical seasonality. It plans to boost investment for growth in both the US and Brazil but noted challenges, such as Brazil’s transition to a regulated market and a temporary VAT charge introduced in Colombia. Despite these hurdles, Playtech remains on track to surpass FY 2025 adjusted EBITDA expectations, maintaining guidance between €250 million and €300 million for the full year.
“These results demonstrate a strong start for Playtech in its transition back to its roots as a predominantly pure-play B2B business,” Weizer stated. “I’m very pleased that we have reported earnings ahead of earlier expectations, reflecting robust performance across our key markets.”
While some remain skeptical about the sustainability of Playtech’s strategic pivot, citing increased competition and regulatory challenges, others believe the company’s focus on leveraging its technological strengths will yield long-term benefits. The coming quarters will be crucial in determining whether Playtech’s shift towards B2B will indeed secure a competitive edge in the global igaming landscape.
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