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Playtech (GB:PTEC)
LSE:PTEC

Playtech (PTEC) AI Stock Analysis

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GB

Playtech

(LSE:PTEC)

76Outperform
Playtech's overall stock score of 76 reflects strong technical momentum and positive strategic moves, such as the sale of Snaitech and a special dividend announcement. The company's robust earnings performance, particularly in the B2B segment, supports a positive outlook. However, challenges in B2C performance, regulatory changes in key markets, and valuation concerns moderate the score. The strategic focus on B2B and solid financial execution position it well for future growth, but achieving consistency in revenue and profitability will be crucial.

Playtech (PTEC) vs. S&P 500 (SPY)

Playtech Business Overview & Revenue Model

Company DescriptionPlaytech (PTEC) is a leading technology company in the gambling and financial trading industries. It is renowned for providing software solutions and services to some of the world's biggest online casinos, sports betting operators, and financial trading platforms. Playtech's core products and services include casino games, live dealer games, bingo, poker, sports betting software, and trading platforms. The company operates globally, supporting its clients with advanced technology and comprehensive back-office tools.
How the Company Makes MoneyPlaytech makes money primarily through licensing its software and technology to online gambling and betting operators. The company charges fees based on revenue sharing agreements or fixed licensing fees for the use of its gaming platforms and solutions. In addition to software licensing, Playtech generates revenue from its financial trading division, which offers trading platforms and services to retail and institutional clients. The company also benefits from strategic partnerships and acquisitions, which enhance its product offerings and market reach. Playtech's revenue streams are diversified across various segments, including casino, sports betting, and financial trading, allowing it to leverage its technology expertise across different industries.

Playtech Financial Statement Overview

Summary
Income Statement
Balance Sheet
Cash Flow
Breakdown
Dec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
1.71B1.60B1.21B1.08B1.51B
Gross Profit
1.71B1.60B1.21B1.08B1.51B
EBIT
255.70M203.80M99.60M39.80M126.35M
EBITDA
467.50M376.60M269.90M212.50M361.89M
Net Income Common Stockholders
105.10M40.60M674.60M-73.04M13.85M
Balance SheetCash, Cash Equivalents and Short-Term Investments
516.20M426.50M575.40M683.68M671.54M
Total Assets
3.33B3.02B3.65B3.06B3.10B
Total Debt
732.90M633.40M1.13B1.26B1.03B
Net Debt
216.70M206.90M556.80M580.89M355.04M
Total Liabilities
1.52B1.32B2.07B2.16B1.88B
Stockholders Equity
1.81B1.70B1.58B899.59M1.23B
Cash FlowFree Cash Flow
216.90M285.50M110.80M247.47M169.71M
Operating Cash Flow
366.90M410.90M225.00M366.92M320.94M
Investing Cash Flow
-317.60M-358.30M-127.60M-89.35M-200.87M
Financing Cash Flow
39.90M-566.90M-218.40M104.62M-69.25M

Playtech Technical Analysis

Technical Analysis Sentiment
Positive
Last Price774.00
Price Trends
50DMA
726.62
Positive
100DMA
727.53
Positive
200DMA
701.67
Positive
Market Momentum
MACD
11.75
Negative
RSI
67.85
Neutral
STOCH
87.47
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:PTEC, the sentiment is Positive. The current price of 774 is above the 20-day moving average (MA) of 722.40, above the 50-day MA of 726.62, and above the 200-day MA of 701.67, indicating a bullish trend. The MACD of 11.75 indicates Negative momentum. The RSI at 67.85 is Neutral, neither overbought nor oversold. The STOCH value of 87.47 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:PTEC.

Playtech Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
£2.32B23.976.42%3.75%
GBRNK
73
Outperform
£396.76M12.339.21%1.76%9.68%126.73%
61
Neutral
$6.55B11.723.07%4.01%2.66%-21.27%
GBENT
60
Neutral
£4.08B-23.74%2.92%6.70%53.23%
60
Neutral
£40.96B1,052.50-1.40%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:PTEC
Playtech
774.00
275.00
55.11%
GB:RNK
Rank Group plc
84.70
-0.54
-0.63%
GB:ENT
Entain plc
653.00
-107.16
-14.10%
FLUT
Flutter Entertainment PLC
242.11
50.53
26.38%

Playtech Earnings Call Summary

Earnings Call Date:Mar 27, 2025
(Q4-2024)
|
% Change Since: 5.59%|
Next Earnings Date:Sep 18, 2025
Earnings Call Sentiment Positive
The earnings call highlighted Playtech's strong financial performance in 2024, driven by growth in its B2B division and strategic transformations. The company is seeing positive developments in key markets and is strategically positioned for future growth. However, challenges remain with underperforming B2C assets, regulatory impacts in Brazil, and declines in Asia. Overall, the highlights outweigh the lowlights, indicating a positive outlook.
Q4-2024 Updates
Positive Updates
Strong Financial Performance in 2024
Playtech reported adjusted EBITDA of €480 million, up 11% year-on-year, with strong momentum in the B2B division, achieving 22% growth in B2B adjusted EBITDA to €222 million.
Strategic Agreements and Transformations
Playtech signed landmark agreements, including the sale of Snaitech to Flutter for €2.3 billion and a revised strategic agreement with Caliplay, setting a new medium-term adjusted EBITDA target for continuing operations of €250 million to €300 million.
Significant Reduction in Net Debt
Playtech reduced net debt to €143 million at the end of 2024 from €283 million a year earlier, reflecting strong cash generation and strategic debt repayments.
Expansion in Regulated Markets
The B2B division saw significant growth in regulated markets, including a 15% increase in Latin America revenue and a 126% increase in the U.S. and Canada, albeit from a small base.
Innovations in AI and Operational Efficiency
Playtech is leveraging AI to drive efficiencies, including the implementation of GitHub Copilot for developers and AI to monitor performance in studios.
Positive Developments in Key Markets
Playtech's strategic positions in the U.S., Brazil, and Latin America are expected to contribute to significant future growth, with Brazil's market regulation commencing in January 2025.
Negative Updates
Underperforming B2C Assets
B2C revenue growth was modest at 2%, with some businesses like HappyBet remaining loss-making and under consideration for closure or sale.
Impact of Regulatory Changes in Brazil
The new stringent regulatory environment in Brazil caused high KYC rejection rates, impacting volumes in January 2025.
Challenges in Asia
Revenues in Asia declined, particularly in China, and Playtech is restructuring its distributor agreements to focus on regulated markets in Asia.
Potential Margin Pressure in Live Casino
Despite growth, EBITDA from Live Casino declined from €53 million in 2023 to €50 million in 2024 due to investment in increased studio capacity.
Company Guidance
During a recent call, Playtech provided guidance reflecting strong financial performance and strategic plans for the future. In 2024, the company achieved a robust adjusted EBITDA of €480 million, marking an 11% year-on-year increase and surpassing previous expectations. The B2B division led this growth with a 22% rise in adjusted EBITDA to €222 million. Playtech outlined a new medium-term adjusted EBITDA target for continuing operations of €250 million to €300 million, factoring in a revised agreement with Caliplay. The company also anticipates generating a free cash flow of €70 million to €100 million. Strategic moves included the sale of Snaitech to Flutter for €2.3 billion, expected to be completed in Q2 2025, with a special dividend payout of €1.7 billion to €1.8 billion anticipated upon deal closure. The company aims to maintain a strong balance sheet, reducing net debt to €143 million by the end of 2024, and plans to utilize proceeds from the Snaitech sale to achieve a net cash position by the end of 2025. Looking ahead, Playtech is focused on leveraging growth opportunities in attractive markets such as the U.S. and Brazil, emphasizing operational efficiency and innovative content delivery to drive future success.

Playtech Corporate Events

M&A TransactionsBusiness Operations and Strategy
Playtech Announces Bond Redemption Following Snaitech Sale
Positive
May 2, 2025

Playtech has announced the redemption of the remaining €150 million of its €350 million senior secured notes, following the sale of Snaitech. The redemption, set for June 2, 2025, will be funded by the proceeds from this sale, which was completed on April 30, 2025. This move is part of Playtech’s strategic financial management, potentially strengthening its financial position and providing flexibility for future investments or operations.

Spark’s Take on GB:PTEC Stock

According to Spark, TipRanks’ AI Analyst, GB:PTEC is a Outperform.

Playtech’s overall stock score of 76 reflects strong technical momentum and positive strategic moves, such as the sale of Snaitech and special dividend announcement. The company’s robust earnings performance, particularly in the B2B segment, supports a positive outlook. However, challenges in B2C performance, regulatory changes in key markets, and valuation concerns moderate the score. The company’s strategic focus on B2B and solid financial execution position it well for future growth, but achieving consistency in revenue and profitability will be crucial.

To see Spark’s full report on GB:PTEC stock, click here.

DividendsBusiness Operations and Strategy
Playtech Announces €1.8 Billion Special Dividend Post-Snaitech Sale
Positive
Apr 30, 2025

Playtech PLC has announced a special dividend of €5.73 per ordinary share following the completion of its sale of Snaitech S.p.A. This distribution, totaling approximately €1.8 billion, will be paid to shareholders on 12 June 2025, with the option to receive the dividend in either Euro or Sterling. This move reflects Playtech’s commitment to returning value to its shareholders and may enhance its attractiveness to investors by showcasing its financial strength and strategic focus on core operations.

M&A TransactionsDividendsBusiness Operations and Strategy
Playtech Completes Snaitech Sale and Announces Special Dividend
Positive
Apr 30, 2025

Playtech plc has completed the sale of its subsidiary, Snaitech S.p.A., to Flutter Entertainment plc for approximately €2.3 billion. This transaction allows Playtech to concentrate on its B2B gambling market strategy, with plans for accelerated growth and a simplified business model. Additionally, Playtech plans to distribute a special dividend of €5.73 per share to its shareholders, expected to be paid in June 2025.

Regulatory Filings and Compliance
Playtech CEO of Snaitech Exercises and Sells Shares
Neutral
Apr 25, 2025

Playtech announced the exercise and sale of 100,000 ordinary shares by Fabio Schiavolin, CEO of Snaitech, under the Playtech Long Term Incentive Plan 2012. This transaction, conducted on the London Stock Exchange, reflects the company’s adherence to the UK Market Abuse Regulation and may have implications for its stock value and investor perceptions.

Shareholder Meetings
Playtech Announces 2025 Annual General Meeting Details
Neutral
Apr 25, 2025

Playtech has announced that its 2025 Annual General Meeting will be held on May 21, 2025, at Bryan Cave Leighton Paisner LLP in London. The AGM notice and Annual Report have been submitted to the National Storage Mechanism and are available online. This announcement is part of Playtech’s ongoing efforts to maintain transparency and engagement with its stakeholders, reinforcing its position as a leader in the gambling technology sector.

Executive/Board ChangesBusiness Operations and Strategy
Playtech Appoints John Gleasure as Chairman Elect
Positive
Apr 16, 2025

Playtech has announced the appointment of John Gleasure as an independent Non-executive Director and Chairman Elect, set to succeed Brian Mattingley after the company’s annual general meeting in May 2025. Gleasure, with extensive experience in sports, media, and technology sectors, is expected to contribute significantly to Playtech’s ongoing transformation into a predominantly B2B business, leveraging his expertise to drive the company’s strategy and create shareholder value.

Business Operations and StrategyRegulatory Filings and Compliance
Playtech CEO of Snaitech Sells 95,000 Shares
Neutral
Apr 14, 2025

Playtech announced that Fabio Schiavolin, CEO of Snaitech, exercised options and sold a total of 95,000 ordinary shares in the company on April 10 and 11, 2025. This transaction, conducted under the Playtech Long Term Incentive Plan 2012, was disclosed in compliance with the UK Market Abuse Regulation. The sale of shares, which took place on the London Stock Exchange, reflects the company’s ongoing commitment to transparency and regulatory compliance. This move may impact Playtech’s stock performance and stakeholder perceptions, as it involves a significant transaction by a key executive.

M&A TransactionsDividendsBusiness Operations and Strategy
Playtech Set to Finalize Snaitech Sale, Announces Special Dividend
Positive
Apr 9, 2025

Playtech PLC has announced the completion of regulatory approvals for the sale of Snaitech S.p.A. to Flutter Entertainment’s subsidiary, with the transaction expected to conclude by the end of April 2025. This sale will allow Playtech to concentrate on its B2B gambling technology offerings and return €5.73 per share to shareholders as a special dividend, highlighting a streamlined business model and focused growth strategy.

Business Operations and Strategy
Playtech Finalizes Revised Strategic Agreement with Caliplay
Positive
Apr 1, 2025

Playtech plc has announced the completion of a revised strategic agreement with Caliplay, finalized on March 31, 2025. This development is expected to strengthen Playtech’s market position and enhance its strategic operations, potentially benefiting stakeholders by aligning with the company’s growth objectives.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Playtech Reports Strong 2024 Results and Strategic Shift to B2B Focus
Positive
Mar 27, 2025

Playtech announced its financial results for 2024, highlighting a strong performance in its B2B sector, with adjusted EBITDA growing by 22% to €222 million. The company is on track to complete the sale of Snaitech in Q2 2025, intending to return €1,700 million – €1,800 million to shareholders. Playtech’s strategic focus is shifting towards a pure-play B2B business, supported by a revised agreement with Caliplay. The company has set new medium-term financial targets, reflecting its growth strategy and operational efficiencies.

Business Operations and StrategyRegulatory Filings and Compliance
Playtech Secures Mexican Antitrust Approval for Caliplay Agreement
Positive
Mar 21, 2025

Playtech plc has announced that it has received Mexican antitrust approval for its revised strategic agreement with Caliplay. With all necessary approvals now in place, the completion of these arrangements is set for 31 March 2025, potentially strengthening Playtech’s market position and operational capabilities in the region.

Financial Disclosures
Playtech to Announce Full-Year 2024 Results on March 27, 2025
Neutral
Mar 11, 2025

Playtech, a prominent player in the online gambling industry, announced it will release its full-year results for 2024 on March 27, 2025. The results presentation will be held in-person and accessible via webcast, hosted by CEO Mor Weizer and CFO Chris McGinnis. This announcement is significant for stakeholders as it provides insights into the company’s performance and strategic direction, potentially impacting its market positioning and investor confidence.

Executive/Board ChangesRegulatory Filings and Compliance
Playtech CEO Exercises Share Options and Sells 25,000 Shares
Neutral
Feb 19, 2025

Playtech has announced that Fabio Schiavolin, CEO of Snaitech, exercised options and sold 25,000 shares of the company under the Playtech Long Term Incentive Plan 2012. This transaction, conducted on the London Stock Exchange, reflects Playtech’s ongoing commitment to transparency and adherence to the UK Market Abuse Regulation. The sale, totaling £190,000, highlights the active participation of Playtech’s management in its equity, potentially impacting investor confidence and market perception.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.