Playtech reported an “excellent” start to 2026 in a post-AGM trading update on Wednesday, with performance across the United States, Mexico and selected European markets outpacing management expectations in the first four months of the year.
CEO Mor Weizer said returns on investments made in recent years are accelerating and contributing meaningfully to profitability. Shares rose 2.8% in London trading following the announcement.
Americas outperformance continues into 2026
The trading update covers the period from 1 January to 30 April. Playtech flagged stronger-than-expected Americas performance at its capital markets update in February and at its FY25 full-year results in March, and said on Wednesday that momentum has continued.
Growth in the US has been “particularly encouraging,” with the company pointing to ongoing returns on investments made over recent years. Certain European markets also contributed to the strong opening period, alongside solid growth in the Live segment.
Despite what management described as ongoing sector headwinds, Weizer said Playtech’s positioning gives it clear upside from continued market expansion.
“Despite the ongoing sector headwinds, the combination of Playtech’s strong expansion in regulated markets, diversified footprint, highly scalable technology and deep partner relationships, leaves the group well positioned to capture the significant market opportunity ahead.” — Mor Weizer, CEO, Playtech
Caliente Interactive and the World Cup opportunity
Playtech’s long-standing partnership with Caliente Interactive in Mexico, restructured through a new Caliplay joint venture agreement signed in September 2024, continues to be a core growth driver. Weizer highlighted the upcoming FIFA World Cup as a major opportunity for Caliente to consolidate its market leadership position.
“Our partnership with Caliente Interactive in Mexico continues to perform strongly, with the upcoming World Cup representing a significant opportunity to further strengthen Caliente’s leadership position in the market.” — Mor Weizer, CEO, Playtech
The Mexico operation forms part of a broader Americas-focused strategy that also includes Playtech’s expanding footprint in the United States, where the company is investing in regulated state-by-state market entry.
Sun Bingo under review as UK tax bite deepens
Not all of the update was positive. Playtech’s white label Sun Bingo business in the UK faces a structural question following the increase in Remote Gaming Duty from 21% to 40% on 1 April 2026. CFO Chris McGinnis, who flagged the issue on the post-FY25 earnings call, said the new rate makes Sun Bingo unprofitable under its current operating model. An operational review launched in response to the tax change is ongoing.
McGinnis has previously noted that Sun Bingo could retain a long-term place within Playtech’s portfolio, citing its B2B-leaning characteristics despite its customer-facing format. Wednesday’s trading update provided no new developments on the review’s progress.
The UK tax environment has weighed on multiple operators and suppliers since the government confirmed the RGD increase and the wider gambling duty overhaul last year. Playtech’s full-year 2025 results, released in March, showed group revenue down 10% to €763.6m, partly reflecting the portfolio changes following the 2024 sale of Snaitech to Flutter Entertainment.
Analyst views: Jefferies holds, Peel Hunt buys
Jefferies, acting as corporate broker to Playtech, maintained a Hold rating with a price target of 405 pence after the update. The stock closed at 363.20 pence the prior trading day, placing the Jefferies target at approximately 12% implied upside.
The broker noted that consensus FY26 EBITDA estimates, currently at €217m and implying 10% year-on-year growth, have risen 15% year-to-date. Jefferies said low-single-digit further upgrades were possible on the strength of Wednesday’s update, carrying its own estimate of €215m.
Peel Hunt, which had reiterated its Buy recommendation and a £6.90 price target ahead of the trading update, pointed to Playtech’s sustained US and Mexico growth as the key basis for its constructive stance.
Penrose to step down from the board
Alongside the trading update, Playtech announced that senior independent director Ian Penrose intends to step down from the board. Penrose has served as a non-executive director, senior independent director and chairman of the Audit and Risk Committee since 2018. He has agreed to remain in all three roles until after the company releases its FY2026 results in spring 2027 to ensure a smooth transition.
“Ian has brought deep global industry experience to Playtech, and has always shown total commitment and dedication during what will have been almost nine years of service to Playtech. We wish him all the best in his future endeavours.” — John Gleasure, Non-Executive Chairman, Playtech
The board change comes as Playtech continues to operate as a predominantly B2B-focused technology supplier following the Snaitech divestment. The company’s ongoing litigation with Evolution remains an open investor concern, a dynamic explored in earlier analysis of the two companies’ diverging investor confidence trajectories. Playtech’s £43.7m share buyback programme, announced in September 2025, remains in the background as the company enters the second half of 2026.
Source: Playtech plc
