Playtech PLC

Good morning everyone, and thank you for joining us for our full year 2025 results. As always, I will begin with a brief overview before handing over to Chris, who will take you through the financials and the outlook. I will then update you on our progress against our strategic priorities. 2025 was a year of strategic transformation for Playtech, and one that went better than we'd expected. We successfully completed the sale of Snytech, revised our agreement with Caliente Interactive, and transformed Playtech into a highly focused B2B technology business with a portfolio of valuable assets. Adjusted EBITDA reached 197 million euros, around 20% ahead of market expectations at the start of 2025. This performance was underpinned by strong momentum across the Americas and material investment income from our equity stakes in Caliente Interactive and Hard Rock Digital. We ended the year with net cash position of 29 million euros, reinforcing the strength of our balance sheet, which gives us flexibility to invest behind growth opportunities and consider further shareholder returns. As a simplified group, with strengthened foundations and clear levels in our key markets, we move into 2026 with confidence, on track to deliver 2026 full-year adjusted EBITDA ahead of market expectations, while continuing to make progress towards our medium-term financial targets. I will now hand over to Chris.

Thanks, Mor. On to slide five, please. As we communicated at both our full year 2024 and our H125 results, these financial results for 2025 reflect the impact of the revised Caliente Interactive Agreement, which came into effect on the 1st of April 2025. As a brief reminder, as part of the new agreement, we no longer receive the additional B2B services fee, which is now removed from revenue and direct costs. Instead, Playtech now recognizes its 30.8% share of income from associate from Caliente Interactive within adjusted EBITDA with dividends flowing into free cash flow. This rebases our reported revenue and affects both adjusted EBITDA and free cash flow, but introduces a more aligned recurring investment income stream. These impacts are particularly noticeable in the year-on-year comparatives. The new agreement came into effect on the 1st of April 2025, but will normalize going forward. Now on to the highlights. I'm pleased to report good financial performance of the group, with adjusted EBITDA reaching 197 million euros, around 20% ahead of market expectations at the start of 2025. Outside of the rebasing of numbers from the full year 25 to reflect the revised Caliente agreement, underlying revenue and adjusted EBITDA were impacted by regulatory headwinds in Colombia and Brazil. However, overall, the group performed strongly in the Americas with significant investment income contribution from Caliente and Hard Rock Digital. Together, these accounted for the vast majority of the 62 million euros of adjusted EBITDA from investment income, highlighting the value in our strategic investments. Free cash flow improved materially in the second half of the year, supported by growing investment income distributions. For the full year 2025, free cash flow is down compared to the reported 2024 figure. However, this comparative includes the impact of Caliente under the previous agreement. When normalizing for this, the starting point was broadly break-even free cash flow for 2024, and as such, our 2025 result shows significant progress. At the same time, we maintained a strong balance sheet, finishing the year in a net cash position, even after repurchasing 8.3% of our equity capital in the second half for a total of 77 million euros. On to the next slide, where we will look at our B2B revenue performance. Reported B2B revenue was €688 million, down year-on-year due to the impact of the revised Caliente Agreement. On an underlying basis, regulated B2B revenue grew 6%, reflecting very strong momentum in the Americas. U.S. and Canada delivered over 70% growth in constant currency, driven by continued wallet share gains with Tier 1 operators and strong performance across live, casino, and the PAM Plus verticals. In Latin America, underlying revenue grew 8% despite the impact from Colombia VAT headwinds and Brazil's particularly stringent transition to a regulated market. Europe ex-UK performance was driven by strong growth in Poland and Spain, offset partially by the impact of higher hardware sales in the prior year. The UK was impacted by tougher regulatory backdrop and certain customer specific changes including the previously communicated insourcing of self-service bedding terminals by one operator. Elsewhere, rest of the world delivered strong double-digit growth driven primarily by strong performance in South Africa. Revenues from unregulated markets declined year on year as expected due to the reclassification of Brazil into our regulated reporting segment. Turning to slide five, sorry, next slide, slide seven. B2B costs increased modestly in 2025, reflecting continued investments in areas where we see strongest potential for long-term returns. In particular, the live vertical where we continue to invest in expansion by increasing capacity in our US studios, which accounted for the majority of the increase in live costs, but we also added new tables in Peru and opened our studio in Sao Paulo to support our growth in the Americas. During the year, we absorbed higher G&A expenses, primarily reflecting certain non-recurring costs, professional fees, and advisory costs, including some legal expenses. Looking ahead, we will continue to manage costs carefully, focusing investment on our areas of strategic priority, particularly in the Americas and live, while preserving efficiency and driving operating leverage over time. On to the next slide. Following the sale of Snytech, our B2C operations now represent a much smaller part of the group. HappyBet is considered non-core, and in 2025 we took decisive steps towards winding down the business, which is now nearing completion. Given the changes to the UK gambling tax framework, we have commenced an operational review of SunBingo to assess its long-term prospects. Our actions across B2C reflect our focus on building a more streamlined operating footprint. Onto the balance sheet, looking at our net debt bridge. We began the year with net debt of 143 million euros. The largest cash movements in the year were the 2.3 billion euro proceeds received from the sale of Snitech, the payment of 1.8 billion euros as a special dividend to shareholders, and the repayment of the remaining 150 million euros of our 350 million euro bond that matured in March 2026. That leaves the group with a single 300 million euro bond maturing in June 2028. In addition, we repurchased 8.3% of our issued equity capital at an average price of £2.67 per share for a total of 77 million euros, which should limit future dilution from employee share plans, including the PTP. As a result of various cash movements outlined, we ended the year in a net cash position of 29 million euros, supported by a fully undrawn 225 million revolving credit facility, which together demonstrates the strength of our balance sheet, even after the substantial capital returns through the special dividend and share buyback. Looking ahead, we have a number of remaining liabilities related to the Snytec sale, totaling approximately 90 million euros. of which around 70 million will be settled in 2026 and 20 million in 2027. Including these upcoming outflows would imply a pro forma net debt position of around 60 million euros for the group. Next slide, please. Let me briefly take you through our capital allocation policy. As a reminder, we maintain our previously communicated net debt to adjusted EBITDA target of one to two times. Our balance sheet remains strong. And while we have a lot going on in the business, I want to put a policy in front of you now in terms of how I think about capital allocation. We look at it in three buckets, the first of which is growth. We continue to prioritize organic investments into priority product verticals, namely live casino, as well as in the high growth geographies across the Americas, including the US, Mexico and Brazil. A key part of our framework is our early stage investments via structured agreements where we typically partner with local heroes ahead of regulation and as a result directly participate in the future upside. This approach has proven to be hugely successful through our long-standing success with Caliente Interactive and more recently with Hard Rock Digital. The second bucket is maintaining flexibility for less predictable events including M&A and regulatory or tax changes. We remain open to selective M&A opportunities, particularly those aligned with our ambition to strengthen Playtech's position as the leading B2B technology provider. As well, we need to remain flexible given the uncertainty of our industry, as highlighted by recent events such as regulatory and tax changes we have seen in various markets in recent months. We also need to maintain flexibility for contingent liabilities, including earn-out payments on existing ventures. Finally, shareholder returns. We returned €1.8 billion to shareholders as a special dividend following the SnideTech sell in H1, representing a return greater than our market capitalization earlier in the year prior to the deal announcement. We also returned €77 million in H2 in the form of share buybacks. We intend to continue returning capital to shareholders going forward. The capital we retain beyond the first two buckets I mentioned of one, investing in growth, and two, maintaining flexibility is what we will consider to be structurally surplus capital. We intend to return this surplus capital to shareholders going forward. This should also grow over time as we generate increasing free cash flow as I discussed on a previous slide. Going forward, we will review returns including dividends and buybacks in line with this policy. Turning to slide 11 and our levers to get to our medium-term financial targets of 250 to 300 million in adjusted EBITDA and 70 to 100 million euros in free cash flow. In 2025, we've made a number of important steps towards these goals. Starting with the U.S., we have seen strong performance across our live, casino, and PAM Plus verticals, as well as good progress with Hard Rock Digital. The outlook is encouraging with a healthy pipeline of new commercial opportunities across our products and services, and we will be profitable on an adjusted EBITDA basis in 2026. Last year, I said we have around 20 million euros of losses at the EBITDA level and around 25 million euros at the cash flow level from underperforming businesses. These figures have improved somewhat year-on-year, but more importantly, we have taken decisive action to address some of these units, with the wind-down of HappyBet now nearing completion and the IGS business now classified as an asset held for sale. At the same time, we continue to capture growth from regulated markets, namely the Americas and selected European jurisdictions. We are investing to further improve and innovate our key product verticals while consistently realizing the benefits of our revenue share business models and the attractive economics within our structured agreements. Partnerships with leading operators remain a core competitive advantage, and we are particularly pleased with the momentum we are seeing with Caliente, DraftKings, and Hard Rock Digital, amongst others. Collectively, these levers, coupled with continued focus on cost efficiency and our efforts in addressing underperforming business units, will drive operating leverage over time. We remain extremely confident in achieving our medium-term adjusted EBITDA and free cash flow targets. Next slide, please. Finally, I would like to update you on our 2026 trading so far and the outlook. We've had a very strong start to the year, particularly across the Americas, where we continue to see sustained demand in both the U.S. and Mexico. In the U.S., the strong activity we saw in Q4 has continued into the new year, and we are encouraged by the healthy pipeline of upcoming launches. In Mexico, Caliente continues to perform strongly, and we expect to see further uplift from the 2026 FIFA World Cup, where Mexico is a co-host nation and the games will be on a local time zone. This is a once-in-a-generation event that will significantly boost visibility, engagement, and betting volumes. Reflecting the strong start, we now expect to deliver full year 2026 adjusted EBITDA ahead of current market expectations, despite the regulatory headwinds across some of our markets. We expect 2026 full-year CapEx, including capitalized development, to be in the range of 90 to 100 million euros, with the increase compared to 25 due to our expansion plans in Brazil. We expect the Group's effective tax rate to be approximately 25 to 28%. Finally, as I highlighted earlier, both management and the Board of Directors remain confident in Playtech's ability to execute our strategy and to deliver our medium-term financial targets, of 250 to 300 million in adjusted EBITDA and 70 to 100 million euros of free cash flow. And with that, I'll now hand back to Mor to cover our strategic priorities.

Thanks, Chris. I will now take you through our investment case, strategy, the progress made so far and our ambitions for the future. But first, a reminder of how we capture value across the value chain. Our wide product offering gives customers access to best-in-class operational expertise. This is how we have supported local heroes and helped them to grow into market-leading operations. Outside of our strong live offering and casino content, we have a very unique selling point. Our 25 plus years of data from our customers. We also have a multi-decade expertise which we translate into a services offering that supports the optimization of our products and for our customers. With our regulatory expertise and market-leading safer gambling tools, there is no other player in the market that offers solutions across the entire value chain. Now to our investment case. For those of you looking at our story after some time, we are now a simplified business. Playtech today is a high-growth, predominantly B2B technology business serving over 200 customers across more than 50 regulated jurisdictions and providing mission-critical infrastructure to many of the world's leading gambling operators. We are recognized for delivering market-leading content and platform technology through value-accretive business models across some of the fastest growing regulated markets globally. We also partner with many of the world's largest and most influential brands, from local heroes such as Totalizator, SNA and Seasal, to major global operators including Flutter, Entain and Bet365. Our multi-decade experience supporting B2B customers enables us to identify opportunities early and invest selectively, directly and via our structured agreement framework. Through this strategy, we have built a portfolio of highly valuable strategic assets now exceeding more than 1 billion euros in value on our balance sheet. This is important to understand. Among these assets, we hold a highly attractive 30.8% stake in Caliente Interactive, Mexico's undisputed market leader. We also have a minority equity stake in Hardhawk Digital, which is performing strongly in the US, with the value of our investment increasing by more than two times since the original investment in March 2023. In addition, we hold stakes in high potential local operators, such as GaleraBet in Brazil and WPlay in Colombia, as well as L-Sports, a rapidly growing sports data provider. The combination of our B2B technology platform and our portfolio of highly valuable assets gives Playtech a uniquely compelling investment case with significant optionality. Coupled with our ambitious medium-term targets and our confidence in achieving them, we believe we are exceptionally well positioned to capture growth and deliver attractive, sustainable value to our shareholders. Turning to the next slide, where I would like to briefly outline our strategic priorities. Firstly, we remain focused on regulated and regulating markets, where we see long-term potential for strong growth. As you will hear in the next few slides, we are making significant progress across our core markets, including the US, Mexico, and Brazil. Secondly, we continue to invest in our product suite to ensure we stay ahead of the competition. In Live Casino, we are expanding our studio footprint and scaling the capacity. In Casino and PAM+, we continue to prioritize personalization, delivery of bespoke solutions, and innovative, high-performing content. Alongside this, we ensure our customers have access to in-house expertise through our managed services offering, where we can take ownership of a customer's day-to-day operations and use our decades of expertise to optimize their operations without needing to migrate platform infrastructure. We also offer the latest safer gambling technology through BadBuddy, helping customers optimize their performance while maintaining the highest standards of player protection. Lastly, following the sale of Snytech, we have intensified our focus on simplifying the organization and optimizing our operating model, ensuring we have the right cost base, the right footprint, and the right allocation of resources to support the next phase of growth. Taken together, these priorities form a clear roadmap for execution and give us strong conviction in our ability to deliver on our medium-term financial targets while positioning Playtech to capture structural growth opportunities and continue to generate attractive, sustainable value for our shareholders. On to the next slide, please. I would like to highlight our long-standing partnership with Caliente Interactive and how together we are positioned to unlock Mexico's significant growth opportunities. And I'll start with a market overview. Mexico's online gambling market is expanding rapidly, with industry forecasts indicating it could double in size over the next five years. The country benefits from a large mobile first population of over 100 million adults supported by high online penetration. Importantly, GGR per adult is relatively low at around $35, and when compared with a market such as Brazil at $64, the room for growth is exciting. Within this context, Caliente is the undisputed leader. With more than 100 years of brand heritage, deep cultural localization, and one of the most extensive sponsorship portfolios in the region, Caliente has created a formidable competitive moat that continues to reinforce its dominance. Under the revised agreement, Caliente contributed around 55 million euros to Playtech's adjusted EBITDA through our 30.8% equity stake, and distributed around 45 million euros to Playtech in dividends, which flowed directly into our free cash flow. The performance has remained strong into 2026. 2026 also brings once-in-a-generation catalysts. The FIFA Men's World Cup, co-hosted in Mexico and, importantly, on the local time zone. As the official sponsor of the Mexican national football team, Caliente is set to benefit from unprecedented global visibility during a tournament expected to reach more than 6 billion cumulative viewership engagements. This creates a powerful platform to accelerate customer acquisition, enhancing cross-sell, and driving higher engagement over the next few years. Playtech is well positioned to benefit from this growth. The combination of Caliente's market leadership, as well as the many other operators we serve in the market, Mexico's structural growth drivers and the World Cup catalyst collectively represent a major value driver for Playtech over the medium term. Turning to the next slide and looking at our progress in the U.S. For the second consecutive year Our U.S. business delivered revenue growth of more than 100% as we continued executing on our strategy and began to realize meaningful returns on the investments made over the last few years. Live Casino remains a standout growth driver with revenues up over 110% year-on-year. Our ability to deliver high-quality dedicated tables continues to be a clear point of differentiation. With more than 60 U.S. tables in operation at year-end, we continue to scale capacity to meet sustained demand from Tier 1 operators. In Casino, we are recognized for our bespoke development and our exclusive branded content, which together offer our customers meaningful differentiation. In 2025, we developed and launched several high-performing bespoke titles for FanDuel, Hard Dog Digital, and Rust Street Interactive. Our PAM Plus platform continues to be a major contributor to U.S. momentum and is now ranked the number one third-party iGaming platform in the country. PAM Plus supported the successful expansion of Delaware North, including new retail and online sports launches across multiple states, and the rollout of Casino in West Virginia. In addition, Parks Casino delivered strong performance, exceeding market growth, supported by our platform capabilities. Finally, I would like to highlight our strong progress with Hard Rock Digital. Together, we developed a first-of-its-kind sports wagering product where outcomes are based on past motor racing events. Offered by the Seminole Tribe, the product has received very positive customer feedback since launch in Q4 last year. Hardrock has also continued to expand beyond Florida, with further momentum in New Jersey and a new launch in Michigan in Q4, where they quickly got to number 4 market share. Our progress in the US highlights accelerating demand across our products and reinforces the scale of the long-term opportunity for Playtech in this market. And the journey in the US is just beginning. In 2025, we launched with major customers in West Virginia and Delaware, and launched earlier this month in Connecticut, bringing our regulated iGaming presence to six US states. As you can see on the map, also in the appendix, the number of US states that have not yet regulated iGaming. We are really excited about the opportunity ahead of us, as this evolves over time. Next slide, please. Looking at Brazil, one of the most exciting regulated opportunities globally. According to industry estimates, Brazil's newly licensed online gambling market is expected to generate around 50% of Latin America's total GGR by 2030, underscoring its potential to become one of the world's largest regulated markets. As we indicated before, Brazil has been challenging in terms of regulatory measures with some of the strictest onboarding requirements globally. However, we view these challenges as temporary. Our confidence in Brazil is grounded in powerful long-term fundamentals. A population of 150 million adults, rising digital adoption, and deep national passion for sports, all of which underpins sustained structural growth. During the year, we completed the build-out of our Sao Paulo live studio, purpose-built to deliver highly localized content through native speaking dealers. We also expanded our local team to over 100 employees, giving us the scale and capability to support a growing demand from customers for our bespoke content solutions. I'm excited about the prospects of this market going forward. Now looking at Live Casino. Live continues to be a high growth, high margin vertical, and one where Playtech is steadily gaining share. With a global live market projected to double over the next five years, we remain exceptionally well positioned in key markets such as the U.S., Mexico, and Brazil, where growth is forecasted to be particularly strong. Importantly, our internal data shows that live casino players generate around 1.8 times more revenue than traditional casino players, making live a highly attractive coastal destination. During 2025, we continued to scale our live operations to meet rising demand. Live delivered 10% growth in regulated markets in 2025, excluding the beneficial impact of Brazil moving into our regulated segment. By the year end, we operated more than 500 tables across 17 studios, doubling our table count since 2020 and adding 11 new studios in the last five years. Our investments were focused on strategic capacity expansion, adding tables across our U.S. studios, launching the live from Las Vegas broadcast studio from the MGM Grand Casino floor, opening our new Sao Paulo studio in Brazil, and selectively increasing table capacity across Peru and Romania. Looking ahead, we remain committed to advancing our live strategy. With expanding studio capacity, differentiated bespoke content, and strong commercial momentum, we expect LiveCasino to become a material contributor to achieving our medium-term financial targets. Turning to the next slide and the opportunities ahead with AI. Playtech was early in applying machine learning within our solutions. and over the past year we have continued to accelerate our AI adoption. We established a robust AI governance framework, rolled out AI tooling across the organization and fostering cross-functional innovation through our innovation labs while continuing to advance our AI-enabled safer gambling capabilities through Playtech Protect. The models are only as good as the data stack they are trained on. We are a data-centric business, and we have over 25 years of data from our customers across platforms and products. This is a core differentiator for Playtech. As we further our AI adoption, the opportunities are significant. From a revenue perspective, we are already using AI to enhance game development in Casino, while exploring AI host and brand customization in Live. Across the platform, we are improving personalized player journeys and developing more intelligent AI-generated sports bet builders. These initiatives help operators deliver more relevant content, deepen engagement, and ultimately grow revenues. On the cost side, AI is unlocking efficiency opportunities across the organization. We are automating routine tasks. We are also responsibly rolling out agentic solutions for software development, coding, testing, and quality assurance. These areas are already generating early productivity gains with more expected overtime. Overall, AI is becoming an increasingly meaningful contributor across Playtex operations, driving product innovation, improving efficiency, and enhancing how we support our customers. Next slide, please. 2025 marked the final year of our five-year sustainability strategy, and I'm pleased to say we delivered meaningful progress across all of our commitments. During the year, we expanded the uptake of BetBuddy, further reinforcing our role as a trusted partner in regulated markets. Our female representation in leadership roles reached 32% up from 23% when laying out our commitments. We have reduced scope 1 and 2 emissions by 48% against our 2018 baseline, an important step towards our 2014 net-zero target. And through our partnership, we supported over 530,000 people in community programs over the last five years. Our efforts were also recognized externally. In 2025, Playtech was ranked number one in our sector in FTSE Women Leaders Report 2025, Climate Leader by the Financial Times, and we were included in the Times Statista World's Most Sustainable Companies list. We are proud of the progress made since establishing our 2025 commitments five years ago. In 2026, we will define our next five-year sustainability roadmap, building on these foundations with renewed focus to support a more resilient, responsible, and future-ready business that delivers long-term value for our customers, colleagues, communities, and shareholders. On to the final slide. As you've heard today, 2025 was a year of successful strategic research for Playtech. Having delivered 197 million euros of adjusted EBITDA in 2025, we are off to an excellent start this year, and we are now on track to deliver full year 2026 adjusted EBITDA ahead of current market expectations. We have very good momentum in the US and increasing activity in Mexico as we enter a World Cup here with Caliente and others. We have a strong balance sheet which gives us flexibility to invest and we continue to look for efficiencies by using AI and addressing underperforming businesses. As we finish the first quarter of 2026, we are confident in the outlook. on track to deliver our medium term targets and excited about the future of Playtech. Thank you for listening. Chris and I obviously will now take any questions you may have. Operator, please open the line for questions.