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Playtech (PYTCY)
:PYTCY
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Playtech
(OTC:PYTCY)
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Rating:67Neutral
Price Target:
$11.50
▲(14.20% Upside)
Playtech's overall stock score reflects a strong financial foundation and attractive valuation, offset by bearish technical indicators and mixed earnings call sentiment. The company's strategic expansions and profitability improvements are promising, but revenue declines and market challenges present risks.
Playtech (PYTCY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.54B
Dividend Yield78.15%
Average Volume (3M)0.00
Price to Earnings (P/E)12.7
Beta (1Y)0.95
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 RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap2.08
Enterprise Value/Revenue3.76
Enterprise Value/Gross Profit3.76
Enterprise Value/Ebitda10.07
Forecast
1Y Price Target
$11.50Price Target Upside14.20% Upside
Rating ConsensusHold
Number of Analyst Covering1
Playtech Business Overview & Revenue Model
Company DescriptionPlaytech Plc, a technology company, provides gambling software, services, content, and platform technologies worldwide. The company offers technologies across various product verticals, including casino, live casino, sports betting, virtual sports, bingo, and poker. It also owns the intellectual property rights and licenses the software; provides marketing and advertising, consulting and online technical support, data mining processing, turnkey, operational and hosting, live game, and video stream services; and operates betting shops. In addition, the company designs, develops, and sells software. Playtech Plc was founded in 1999 and is based in Douglas, the Isle of Man.
How the Company Makes MoneyPlaytech generates revenue through multiple key streams, primarily by providing software solutions and services to online gambling operators. Its B2B segment earns money by licensing its gaming software to third-party operators, charging fees based on a percentage of revenue generated from the games. Additionally, Playtech's B2C segment operates its own online gaming brands, directly earning revenue from player activity. The company also benefits from partnerships with various operators, enhancing its reach and revenue potential. Significant factors contributing to its earnings include the growing global acceptance of online gambling, continuous innovation in gaming technology, and the expansion of regulated markets, which create more opportunities for Playtech's offerings.
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. The company has efficiently managed costs, leading to better profit margins despite a decrease in revenue. The balance sheet shows 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 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 848.00M | 1.71B | 1.60B | 1.21B | 1.08B |
| Gross Profit | 848.00M | 771.90M | 1.60B | 1.21B | 1.08B |
| EBITDA | 316.50M | 282.50M | 376.60M | 272.00M | 212.50M |
| Net Income | 223.20M | 156.80M | 87.60M | 674.60M | -297.28M |
Balance Sheet | |||||
| Total Assets | 3.30B | 3.33B | 3.02B | 3.65B | 3.06B |
| Cash, Cash Equivalents and Short-Term Investments | 268.10M | 516.20M | 426.50M | 575.40M | 683.68M |
| Total Debt | 494.00M | 732.90M | 633.40M | 1.13B | 1.26B |
| Total Liabilities | 1.48B | 1.52B | 1.32B | 2.07B | 2.16B |
| Stockholders Equity | 1.82B | 1.82B | 1.70B | 1.58B | 899.59M |
Cash Flow | |||||
| Free Cash Flow | 235.30M | 216.90M | 285.50M | 110.80M | 247.47M |
| Operating Cash Flow | 391.10M | 366.90M | 410.90M | 225.00M | 366.92M |
| Investing Cash Flow | -188.40M | -309.50M | -358.30M | -127.60M | -89.35M |
| Financing Cash Flow | -266.00M | 39.90M | -566.90M | -218.40M | 104.62M |
Playtech Technical Analysis
Negative
10.07
Price Trends
16.61
Negative
13.03
Negative
10.04
Negative
Market Momentum
-1.57
Negative
19.16
Positive
0.18
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PYTCY, the sentiment is Negative. The current price of 10.07 is below the 20-day moving average (MA) of 10.93, below the 50-day MA of 16.61, and above the 200-day MA of 10.04, indicating a bearish trend. The MACD of -1.57 indicates Negative momentum. The RSI at 19.16 is Positive, neither overbought nor oversold. The STOCH value of 0.18 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PYTCY.
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 |
|---|---|---|---|---|---|---|---|
75 Outperform | 4.82B | 104.66 | 3.04% | ― | 26.99% | 0.00% | |
72 Outperform | 6.44B | 23.26 | 71.63% | 3.27% | 7.47% | 2.58% | |
67 Neutral | $1.54B | 12.66 | 6.35% | 78.15% | ― | ― | |
63 Neutral | 7.59B | 22.89 | 49.72% | ― | 3.93% | 19.20% | |
61 Neutral | 38.10B | -65.63 | -30.16% | ― | 25.80% | 27.64% | |
49 Neutral | 491.23M | -0.88 | -1837.27% | ― | -1.10% | -1.69% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
Performance Comparison
PYTCY
Playtech
10.07
2.86
39.67%
LNW
Light & Wonder
88.69
-23.34
-20.83%
RRR
Red Rock Resorts
59.71
8.24
16.01%
DKNG
DraftKings
42.88
3.93
10.09%
RSI
Rush Street Interactive
21.28
11.11
109.24%
BALY
Bally's Corporation
10.00
-12.07
-54.69%
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.