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Investing.com -- Shares of Playtech (LON:PTEC) rose 9% on Thursday after the gambling technology company reported first-half earnings ahead of expectations and reiterated its medium-term financial targets.
The company posted revenue of €387 million for the six months to June 30, down 10% from a year earlier.
Earnings before interest, tax, depreciation and amortization fell 16% to €92 million, in line with its earlier guidance of at least €90 million.
Playtech said the results reflect its transition to a primarily business-to-business model following the sale of Snaitech and revised terms with Caliente Interactive.
The company ended the half with €77 million in net cash. It also reported receiving its first dividend payment from Caliente of $21 million.
Playtech said it has made a solid start to the second half and expects to deliver full-year 2025 EBITDA ahead of market forecasts.
Jefferies estimates full-year EBITDA at €171 million compared with consensus estimates of €170 million.
The company reiterated its medium-term targets for continuing operations, setting EBITDA between €250 million and €300 million and free cash flow between €70 million and €100 million.
Business-to-business operations posted revenue growth of 6% at constant currency, with EBITDA up 3%.
In the Americas, revenue declined 13%, with the United States and Canada up 68% and Latin America down 21%.
Revenue rose 4% in Europe excluding the United Kingdom, fell 4% in the United Kingdom, and rose 28% in the rest of the world. By product, live casino revenue rose 9% and software-as-a-service revenue increased 74%.
Business-to-consumer operations reported a 17% decline in revenue. EBITDA losses narrowed to €1.5 million from €4.3 million a year earlier.
“We anticipate a 5-7% rise in consensus EBITDA expectations for FY25E, despite increased investment for growth in the US and Brazil (and country headwinds in Colombia and Brazil),” said analysts at Jefferies.
The brokerage noted that Playtech’s valuation remains low at 7.2 times enterprise value to EBITDA for fiscal 2026.