Playtech PLC (PYTCY)
OTHER OTC:PYTCY
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Playtech
(OTC:PYTCY)
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Rating:60Neutral
Price Target:
$11.00
▲(19.18% Upside)
Action:DowngradedDate:03/28/26
The score is driven primarily by uneven financial performance and earnings-quality concerns despite a healthier balance sheet and positive cash generation. Technicals are mixed-to-weak with the stock below key moving averages, partially offset by very attractive headline valuation metrics and a moderately positive earnings-call outlook (EBITDA outperformance and strengthened liquidity), tempered by revenue declines and market/regulatory headwinds.
Positive Factors
Stronger balance sheet and net cash after Snaitech sale
A EUR 300m+ disposal that produced a EUR 77m net cash position materially improves financial flexibility. This reduces leverage and refinancing risk, funds strategic investment (U.S./Brazil) and preserves capacity under a fully undrawn EUR225m RCF and manageable 2028 bond maturity.
Negative Factors
Top-line volatility and recent revenue decline
A 10% YoY revenue decline and sharp multi-year swings indicate reliance on large operator contracts and sensitivity to commercial renegotiations. Persistent top-line volatility undermines scale economics, complicates planning for R&D and sales investment and pressures long-term margin stability.
Read all positive and negative factors
Positive Factors
Negative Factors
Stronger balance sheet and net cash after Snaitech sale
A EUR 300m+ disposal that produced a EUR 77m net cash position materially improves financial flexibility. This reduces leverage and refinancing risk, funds strategic investment (U.S./Brazil) and preserves capacity under a fully undrawn EUR225m RCF and manageable 2028 bond maturity.
Read all positive factors
Playtech (PYTCY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.50B
Dividend Yield102.93%
Average Volume (3M)0.00
Price to Earnings (P/E)―
Beta (1Y)0.97
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees8,300
SectorConsumer Cyclical
Sector Strength84
IndustryGambling, Resorts & Casinos
Share Statistics
EPS (TTM)-0.75
Shares Outstanding154,647,130
10 Day Avg. Volume0
30 Day Avg. Volume0
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.58
Price to Sales (P/S)1.06
P/FCF Ratio16.74
Enterprise Value/Market Cap0.83
Enterprise Value/Revenue1.70
Enterprise Value/Gross Profit1.64
Enterprise Value/Ebitda156.84
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 Description
Playtech (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 produc...
How the Company Makes Money
Playtech primarily makes money by supplying gambling technology and content to gaming operators under business-to-business commercial arrangements. Key revenue streams typically include: (1) Platform and software fees: recurring fees charged for t...
Playtech Earnings Call Summary
Earnings Call Date:Sep 11, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Sep 17, 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.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.
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.
Read all updates
Q2-2025 Updates
Positive
Negative
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.
Read all positive updates
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
Income Statement
54
Neutral
Balance Sheet
66
Positive
Cash Flow
57
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 733.46M | 848.00M | 1.71B | 1.60B | 1.21B |
| Gross Profit | 763.60M | 848.00M | 771.90M | 1.60B | 1.21B |
| EBITDA | 7.97M | 316.50M | 165.10M | 290.90M | 210.20M |
| Net Income | 1.43B | 223.20M | 156.80M | 87.60M | 674.60M |
Balance Sheet | |||||
| Total Assets | 2.21B | 3.30B | 3.33B | 3.02B | 3.65B |
| Cash, Cash Equivalents and Short-Term Investments | 325.16M | 268.10M | 516.20M | 426.50M | 575.40M |
| Total Debt | 337.16M | 494.00M | 732.90M | 633.40M | 1.13B |
| Total Liabilities | 822.95M | 1.48B | 1.52B | 1.32B | 2.07B |
| Stockholders Equity | 1.38B | 1.82B | 1.82B | 1.70B | 1.58B |
Cash Flow | |||||
| Free Cash Flow | 48.31M | 235.30M | 216.90M | 285.50M | 110.80M |
| Operating Cash Flow | 92.31M | 391.10M | 366.90M | 410.90M | 225.00M |
| Investing Cash Flow | 1.82B | -188.40M | -309.50M | -358.30M | -127.60M |
| Financing Cash Flow | -1.94B | -266.00M | 39.90M | -566.90M | -218.40M |
Playtech Technical Analysis
Positive
9.23
Price Trends
9.19
Positive
8.24
Positive
10.70
Negative
Market Momentum
0.25
Negative
61.50
Neutral
95.07
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PYTCY, the sentiment is Positive. The current price of 9.23 is below the 20-day moving average (MA) of 9.47, above the 50-day MA of 9.19, and below the 200-day MA of 10.70, indicating a neutral trend. The MACD of 0.25 indicates Negative momentum. The RSI at 61.50 is Neutral, neither overbought nor oversold. The STOCH value of 95.07 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PYTCY.
Playtech Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $4.97B | 55.90 | 27.50% | ― | 23.15% | ― | |
70 Outperform | $5.92B | 19.42 | 85.64% | 3.22% | 4.69% | 15.18% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $19.71B | 30.77 | 0.46% | ― | 18.51% | 37.25% | |
60 Neutral | $1.50B | -2.07 | 99.57% | 102.93% | ― | ― | |
47 Neutral | $536.80M | -1.43 | -116.69% | ― | 0.36% | 47.55% |
* Consumer Cyclical Sector Average
PYTCY
Playtech
10.26
3.06
42.43%
RRR
Red Rock Resorts
56.40
18.06
47.09%
DKNG
DraftKings
22.25
-11.97
-34.98%
RSI
Rush Street Interactive
21.41
9.72
83.15%
BALY
Bally's Corporation
11.06
-4.40
-28.46%
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.