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Playtech (PYTCY)
:PYTCY
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Playtech
(OTC:PYTCY)
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Rating:71Outperform
Price Target:
$8.50
▼(-7.91% Downside)
Playtech's overall stock score is driven by its strong financial performance and attractive valuation. Despite revenue challenges, the company maintains profitability and a robust balance sheet. The earnings call highlighted strategic achievements, though technical indicators suggest caution due to potential bearish trends.
Positive Factors
Strong Cash Flow
Strong cash generation supports sustainable growth and provides financial flexibility for strategic investments and debt management.
Balance Sheet Health
Low leverage and a stable equity base enhance financial stability, allowing Playtech to withstand market fluctuations and invest in growth opportunities.
Expansion in Americas
Significant revenue growth in the Americas indicates successful market penetration and potential for continued expansion in high-growth regions.
Negative Factors
Revenue Decline
A decline in group revenue reflects challenges in maintaining market share and could impact long-term growth if not addressed.
B2C Revenue Decline
Continued decline in B2C revenue suggests potential issues in consumer engagement or competitive pressures, affecting profitability.
Regulatory Challenges
Regulatory challenges in key markets can hinder revenue growth and require strategic adjustments to comply and thrive in these regions.
Playtech (PYTCY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.20B
Dividend Yield100.9%
Average Volume (3M)0.00
Price to Earnings (P/E)9.8
Beta (1Y)0.86
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees8,300
SectorConsumer Cyclical
Sector Strength84
IndustryGambling, Resorts & Casinos
Share Statistics
EPS (TTM)11.18
Shares Outstanding154,647,130
10 Day Avg. Volume0
30 Day Avg. Volume0
Financial Highlights & Ratios
PEG Ratio0.10
Price to Book (P/B)1.39
Price to Sales (P/S)2.97
P/FCF Ratio10.72
Enterprise Value/Market Cap2.66
Enterprise Value/Revenue9.71
Enterprise Value/Gross Profit9.71
Enterprise Value/Ebitda36.19
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Playtech Business Overview & Revenue Model
Company DescriptionPlaytech (PYTCY) is a leading technology company in the gaming and entertainment sector, specializing in the development of software and technology solutions for online gambling operators. Founded in 1999, Playtech offers a diverse range of products including casino games, poker, sports betting, live gaming, and virtual sports. The company operates in various sectors, including B2B and B2C, and serves numerous clients worldwide, enhancing their gaming platforms with cutting-edge technology and innovative gaming experiences.
How the Company Makes MoneyPlaytech generates revenue primarily through its B2B and B2C operations. Its B2B segment provides software and technology solutions to online gaming operators, earning income through licensing fees, revenue sharing agreements, and transactional fees based on the gaming activities of its partners. The B2C segment involves Playtech's own branded online casinos and poker rooms, which contribute to its revenues through player deposits and gaming activity. Additionally, Playtech has formed strategic partnerships with various operators and sportsbooks, which further enhances its revenue streams through collaborative offerings and joint ventures. The company's diverse portfolio of products, including live dealer games and mobile gaming solutions, also plays a significant role in driving earnings as more players engage in online gaming activities.
Playtech Earnings Call Summary
Earnings Call Date:Sep 11, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Mar 19, 2026
Earnings Call Sentiment Neutral
The earnings call reflected a mixed sentiment with notable achievements such as strong adjusted EBITDA performance, successful strategic divestments, and expansion in the Americas. However, these were balanced by declines in group revenue and B2C performance, alongside challenges in certain markets.Q2-2025 Updates
Positive Updates
Strong Adjusted EBITDA Performance
Adjusted EBITDA for the first half of the fiscal year 2025 was EUR 92 million, consistent with upgraded expectations. This reflects solid growth in the B2B business and strategic progress in core markets, particularly in the Americas.
Successful Sale of Snaitech
The disposal of Snaitech, completed in April, bolstered the balance sheet with over EUR 300 million in net proceeds, leading to a net cash position of EUR 77 million at the end of June 2025.
Expansion in the Americas
The U.S. and Canada region saw a 64% increase in revenues, and Playtech is investing in high-growth areas such as Brazil and the U.S. with strong momentum in the Live Casino segment.
Live Casino Revenue Growth
Live Casino revenues increased by 9% year-on-year, with standout performance in the U.S. showing over 300% revenue growth.
Negative Updates
Decline in Group Revenue
Group revenue for the first half of the year was EUR 387 million, down 10% year-on-year due to the impact from revised agreements with Caliente Interactive.
B2C Revenue Decline
B2C revenue declined 17% year-on-year to EUR 41 million in the first half, with adjusted EBITDA loss narrowing from EUR 4.3 million to EUR 1.5 million.
Challenges in Brazil and Colombia
Regulatory transition issues in Brazil and the implementation of VAT in Colombia posed challenges, impacting revenue growth in these markets.
Company Guidance
During the call, Playtech provided detailed guidance for its fiscal year 2025, highlighting a strong performance with an adjusted EBITDA of EUR 92 million in the first half, in line with the revised expectations. Group revenue for the first half was EUR 387 million, reflecting a 10% year-on-year decline due to revised terms with Caliente Interactive, while underlying group earnings saw growth. The adjusted EBITDA grew by 5% year-on-year in the first half, reaching EUR 91.6 million, surpassing consensus expectations. Playtech ended the period with a net cash position of EUR 77 million, aided by the net proceeds from the Snaitech sale. The company maintains a strong balance sheet with a EUR 300 million bond maturing in 2028 and a fully undrawn EUR 225 million revolving credit facility. For full-year 2025, Playtech expects the adjusted EBITDA to exceed expectations, with CapEx guidance between EUR 80 million to EUR 90 million, a reduction from previous guidance. The company also maintains an effective tax rate guidance of 25% to 28% and aims to meet its medium-term adjusted EBITDA target of EUR 250 million to EUR 300 million, supported by strategic investments in high-growth areas like the U.S. and Brazil.Playtech Financial Statement Overview
Summary
Playtech demonstrates a solid financial position with improved profitability and strong cash flow generation. Despite a revenue decrease, efficient cost management has led to better profit margins. The balance sheet reflects low leverage and a stable equity base, contributing to financial stability.Income Statement
Playtech shows a fluctuating revenue trend with a notable decrease in 2024 to $848 million from $1,706.7 million in 2023. However, profitability metrics such as Net Profit Margin and EBIT Margin show improvement in 2024, indicating an efficient cost management strategy. The company also saw a significant increase in Net Income from $105.1 million in 2023 to $223.2 million in 2024, highlighting improved profitability.65
Positive
Balance Sheet
The balance sheet is strong, with a healthy Debt-to-Equity Ratio of approximately 0.27 in 2024, indicating low leverage. Stockholders' Equity increased to $1,815.6 million, showing a stable equity position. The Equity Ratio is around 55%, suggesting a good proportion of equity financing. Assets have remained stable, ensuring a solid financial standing despite revenue fluctuations.70
Positive
Cash Flow
Playtech's cash flow is robust, with a positive Free Cash Flow of $235.3 million in 2024, reflecting strong cash generation. Operating Cash Flow increased to $391.1 million, indicating efficient operations. The Free Cash Flow to Net Income ratio is healthy, supporting sustainable growth. Despite fluctuations in investing and financing activities, the overall cash flow position remains strong.75
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 328.20M | 848.00M | 1.71B | 1.60B | 1.21B | 1.08B |
| Gross Profit | 328.20M | 848.00M | 771.90M | 1.60B | 1.21B | 1.08B |
| EBITDA | 88.10M | 316.50M | 165.10M | 290.90M | 210.20M | 212.50M |
| Net Income | 1.79B | 223.20M | 156.80M | 87.60M | 674.60M | -297.28M |
Balance Sheet | ||||||
| Total Assets | 2.31B | 3.30B | 3.33B | 3.02B | 3.65B | 3.06B |
| Cash, Cash Equivalents and Short-Term Investments | 469.00M | 268.10M | 516.20M | 426.50M | 575.40M | 683.68M |
| Total Debt | 336.70M | 494.00M | 732.90M | 633.40M | 1.13B | 1.26B |
| Total Liabilities | 765.50M | 1.48B | 1.52B | 1.32B | 2.07B | 2.16B |
| Stockholders Equity | 1.54B | 1.82B | 1.82B | 1.70B | 1.58B | 899.59M |
Cash Flow | ||||||
| Free Cash Flow | 67.80M | 235.30M | 216.90M | 285.50M | 110.80M | 247.47M |
| Operating Cash Flow | 229.40M | 391.10M | 366.90M | 410.90M | 225.00M | 366.92M |
| Investing Cash Flow | 1.85B | -188.40M | -309.50M | -358.30M | -127.60M | -89.35M |
| Financing Cash Flow | -2.18B | -266.00M | 39.90M | -566.90M | -218.40M | 119.80M |
Playtech Technical Analysis
Neutral
9.23
Price Trends
7.52
Positive
10.67
Negative
10.35
Negative
Market Momentum
0.17
Negative
62.00
Neutral
88.43
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PYTCY, the sentiment is Neutral. The current price of 9.23 is above the 20-day moving average (MA) of 7.05, above the 50-day MA of 7.52, and below the 200-day MA of 10.35, indicating a neutral trend. The MACD of 0.17 indicates Negative momentum. The RSI at 62.00 is Neutral, neither overbought nor oversold. The STOCH value of 88.43 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PYTCY.
Playtech Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | ― | ― | 50.47% | ― | 1.87% | 42.43% | |
71 Outperform | $1.20B | 9.81 | ― | 100.90% | ― | ― | |
71 Outperform | $6.47B | 21.65 | 96.16% | 3.28% | 4.69% | 15.18% | |
68 Neutral | $4.36B | 77.05 | 29.67% | ― | 23.15% | ― | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
59 Neutral | $31.08B | ― | -29.59% | ― | 18.51% | 37.25% | |
54 Neutral | $787.58M | ― | -114.88% | ― | 0.36% | 47.55% |
* Consumer Cyclical Sector Average
PYTCY
Playtech
7.80
0.65
9.09%
LNW
Light & Wonder
90.20
-0.97
-1.06%
RRR
Red Rock Resorts
60.97
13.88
29.48%
DKNG
DraftKings
35.52
-3.72
-9.48%
RSI
Rush Street Interactive
19.30
5.54
40.26%
BALY
Bally's Corporation
16.03
-1.47
-8.40%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.