Playtech (LSE:PTEC) reported a 10% year-on-year decline in revenue for the 2025 financial year, coming in below analyst expectations as regulatory changes affected performance across several markets.
Revenue for FY25 totalled €763.60 million, missing the €792.02 million consensus forecast compiled from eight analysts. Adjusted EBITDA dropped 37% to €135.20 million, also below the expected €175.13 million.
Net income for the year reached €44.20 million, translating to earnings per share of €0.15.
During the year, the company completed the sale of its Snaitech business and returned €1.8 billion to shareholders through a special dividend.
Playtech said revised terms with Caliente Interactive reduced B2B revenue but increased investment income through its equity stake in the business. The updated agreement changed the structure of the revenue-sharing model between the two companies.
Revenue in the United States nearly doubled during the period, supported by expanded partnerships and launches in additional states. The broader Americas region continued to show growth momentum despite tax pressures in several markets.
However, regulatory changes and new tax measures in Brazil and Colombia weighed on Latin American performance, contributing to the overall revenue decline. Playtech said evolving tax frameworks across multiple jurisdictions in the region created additional operating challenges.
Looking ahead, the company expects Adjusted EBITDA for FY26 to come in ahead of current market consensus. Playtech also reaffirmed its medium-term targets of €250 million to €300 million in Adjusted EBITDA and €70 million to €100 million in free cash flow.
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