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Leisure, gaming and gambling

Playtech buoyed by strategic investments as full-year earnings call approaches

Playtech PLC (LSE:PTEC), the FTSE 250 gambling tech group, is expected to announce its full-year results on Thursday, March 2023.

Playtech’s trading update published on January 29 outlined an adjusted EBITDA target of €400mln (£351mln) for the year, representing a 26% year-on-year increase driven by both the B2B and Snaitech Italian businesses.

The wider market predicts roughly the same, while also expecting net borrowing to reduce by 34% and free cash to increase four-fold to £173mln.

Playtech has netted some major deals in the year to date, including a significant strategic partnership and minority investment with Hard Rock Digital.

The group also made an investment in NorthStar Gaming, and Ontario-based online casino and sportsbook operator, in February.

While Jefferies analysts “do not expect a material change to estimates in the current year”, they expect revenue growth to pick up from 2024.

However, a legal dispute with its largest customer, Caliplay, “will likely drive negative headlines and uncertainty for Playtech”, Jefferies noted in February, but has maintained a buy rating with a target price of 630p regardless, making for a 15% upside.

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