I have just bought into this company as it is well below the float price and has been savagely knocked back by the US gambling fiasco. The trading statement looks promising and new contracts coming in IMO the market is undervaluing this company. It supplies the software to so many of our successful gambling companies. I'd welcome any comments.

All looks well for PTEC see the figures mentioned here....

Davy Research
Ladbrokes plc
Gaming
Research Home Gaming Ladbrokes plc
Marketing deal with Playtech will fuel earnings growth; incremental cash conversion to be depressed until 2018

DAVY VIEW
Many industry observers will have seen this deal coming. Ladbrokes has concluded that an outsourced solution to online marketing and customer acquisition is its best route to future online growth. Playtech is seen as the standard-bearer for such expertise, with the success of the William Hill Online (WHO) venture providing powerful testimony to what it can bring to the table of a large, UK-based gaming operator.

As with the WHO venture before it, the structure of this deal potentially lends itself to very attractive returns for Playtech. We estimate that if Ladbrokes Digital generates annual EBITDA of £145.8m by 2017 (incremental EBITDA of £100m), then Playtech would walk away with a minimum cash return of £250m (when product fees are included). Depending on what multiple Ladbrokes plc is trading on at that point, the figure could be as high as £300m – not too shabby given the low level of new investment required by Playtech to service this deal.

To be fair to Ladbrokes, Digital EBITDA of £145.8m would represent a more than trebling of online profits over five years. The timing of this deal is also exemplary; just at the point where Ladbrokes' new website is ready to be rolled out, its new mobile platform is being developed and its risk management functions have been improved, it now has a powerful customer acquisition and retention capability.

A word of caution: our suspicion is that the market will focus on the potential EPS growth that this deal brings at the expense of the up-front cash costs of it between now and 2017. For example, it is difficult to see how short-term free cash flow will be enhanced should the first target be met. Should incremental EBITDA of £35m be made, we estimate that the cash outlay would equate to 2-2.5 times the cash inflows from the incremental earnings generated. Beyond 2017, cash-flow generation will be stronger but discounted cash-flows five years out are worth far less to Ladbrokes than the near-term payments to Playtech as targets are reached.

In truth, Ladbrokes probably had little choice but to do this type of deal at this point; after all, there are just 21 months until the industry goes over the UK gaming tax cliff. But make no mistake, the cash-flow implications of this deal are high. As such, our valuation of Ladbrokes remains largely unchanged.


More from Davy Research

Fantastic Results, beat concensous forecasts easily..

Trading update

Playtech has made a strong start to 2013, with average daily revenues for the first 11 weeks of 2013 up over 15% on Q1 2012 and up 5% on Q4 2012


http://www.investegate.co.uk/playtech-limited--ptec-/rns/full-year-results/201303140700299831Z

Playtech beats earnings forecasts after strong 201214 Mar 2013 - 07:26

LONDON, March 14 (Reuters) - Britain's Playtech beat earnings estimates in 2012 as it strengthened its position as the market leader in gambling software, and said it was confident for 2013. The company said adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) were 186.7 million euros ($241.7 million) in the year to end-Dec., compared to 124.9 million the year previous. That compared to market forecasts of 169.1 million, according to Thomson Reuters I/B/E/S estimates. Playtech, which moved from the junior AIM market to the midcap index of the main market last year, said it had made a strong start to 2013, with average daily revenues up over 15 percent in the first 11 weeks compared to last year. The company sold its stake in its venture with number one British bookmaker William Hill for 424 million pounds earlier this month, and less than two weeks later signed a deal to help the number two Ladbrokes develop its online offering. ($1 = 0.7722 euros) (Reporting by Rosalba O'Brien, Editing by Brenda Goh) ((rosalba.obrien@thomsonreuters.com)(+44 20 7542 3431)(Reuters Messaging: rosalba.obrien.thomsonreuters.com@reuters.net)) Keywords:

RESEARCH ALERT-Playtech: Canaccord Genuity raises target price14 Mar 2013 - 09:06

March 14 (Reuters) - Playtech Ltd : * Canaccord Genuity raises target price to 750p from 604p; rating buy For a summary of rating actions and price target changes on European companies: Reuters Eikon users, click on [RCH/EUROPE] Reuters 3000Xtra users, double-click [RCH/EUROPE] Reuters Station users, click .1580 ((nyc.equities.newsroom@reuters.com); (Reuters Messaging: saqib.ahmed.thomsonreuters.com@reuters.net) ((Bangalore Newsroom +91 80 4135 5800; within U.S. +1 646 223 8780))

Investec Playtech Ltd 14/03/2013
Retains
Hold Hold 0 400.00 600.00 575.00 200 0

Panmure Gordon Playtech Ltd 14/03/2013
Reiterates
Buy Buy 0 627.00 627.00 575.00 0 2

14 Mar Playtech Ltd PTEC Canaccord Genuity Buy 591.00 575.00 604.00 750.00 Reiterates

SP TARGET 750p.

15 Mar Playtech Ltd PTEC Deutsche Bank Buy 0.00 613.00 650.00 680.00 Reiterates

650p SP Target price.

Playtech Price Target Raised to $11.20 at Canaccord Genuity (PTEC)
Posted by Wayne Rhoads on Mar 15th, 2013 // No Comments

Research analysts at Canaccord Genuity raised their target price on shares of Playtech (LON: PTEC) from $9.02 (604 GBX) to $11.20 (750 GBX) in a report released on Thursday. The firm currently has a “buy” rating on the stock.
Playtech (LON: PTEC) opened at 613.00 on Thursday. Playtech has a 52-week low of GBX 322.25 and a 52-week high of GBX 581.00. The stock’s 50-day moving average is currently GBX 379.9. The company’s market cap is £1.773 billion.
Other equities research analysts have also recently issued reports about the stock. Analysts at Investec Securities raised their price target on shares of Playtech from $5.97 to $8.96 in a research note to investors on Thursday. They now have a “hold” rating on the stock. Separately, analysts at Panmure Gordon reiterated a “buy” rating on shares of Playtech in a research note to investors on Monday. They now have a $9.36 price target on the stock. Finally, analysts at Daniel Stewart & Co reiterated a “buy” rating on shares of Playtech in a research note to investors on Monday. They now have a $9.48 price target on the stock.
Playtech Limited is an online gaming software supplier. The Company, along with its subsidiaries, develops unified software platforms for the online and land-based gambling industry, targeting online and land-based operators.

http://zolmax.com/playtech-price-target-raised-to-11-20-at-canaccord-genuity-ptec/2949062/

Gone long again, update on thursday.

BRIEF-Playtech says Q1 gross income rose 16 pct25 Apr 2013 - 07:01

April 25 (Reuters) - Playtech * Q1 gross income rose 16 pct to 102.5 million euros * Exploring "strategic alternatives" after sale of William Hill Online stake. * Committed to paying interim dividend at or above level declared last year. (Writing by Keith Weir, 44 20 7542 8022) ((keith.weir@thomsonreuters.com; 020 7542 8022; Reuters Messaging: keith.weir.reuters.com@reuters.net)) Keywords: PLAYTECH Q1/

JPMorgan Cazenove initiates Playtech at OVERWEIGHT with a 690p price target. It says the company is wellplaced to benefit from the growth of the Europe-based online gambling market, remaining insulated from the
competitive pressures in the business-to-consumer market. It forecasts high single-digit revenue growth purely
from the growth of the online gambling market and its expect this to be supplemented by new business wins
and acquisitions. It says the recent deal with Ladbrokes gives Playtech an additional option on the potential
recovery on Ladbrokes' online business, while not ruling out similar arrangements with other business-toconsumer operators. Shares closed Wednesday at 624p.

New issue yesterday in the gaming market Quixant listed on Aim currently up 60%.

PTEC - from Traders Own on Twitter:

08:47:13 Broker Citi say BUY Playtech (PTEC): Newshound
Initiate with Buy, price target 840p. High and sustainable margins, a substantial cash flow, an earnings accelerator from likely acquisition(s) and strong growth macro underpin an attractive equity story. We see re-rating potential as earnings quality improves and the relevant valuation peer group is reassessed, driving our 840p price target. We expect further upside to 915p if acquisitions are added

Citigroup Inc Initiates Coverage on Playtech PLC
With justification in note to clients

It [Citi] is, however, a ‘buyer’ of the gaming software group Playtech after initiating coverage earlier and reckons the shares are worth 840p.

“High and sustainable margins, a substantial cash flow, an earnings accelerator from likely acquisition(s) and strong growth macro underpin an attractive equity story,” Citi said in a note to clients.

In the Mail today - Sagri could be involved in one of the first big deals of 2015. Playtech which he founded and still owns 36.6% by his vehical brickington trading .
There is talk it has won the auction to gain control of online gaming group Bwin. party Digital Entertainment, with a bid worth £1.15 bn or north of 140p a share.

".....won the auction to gain control ...."
I wasn't aware there was an auction.
BPTY are is discussions over a merger or takeover, but are not subject to an auction! [Bwin.Party In Negotiations With AMAYA and Playtech]

On talk it has ".....won the auction to gain control ...." That's what is printed in today's Mail.

States they have beat Amaya Gaming Group to the punch.

Might possibly be in relation to: "We are in active discussions regarding the sale of Win, the Group's social gaming business and expect to make a further announcement shortly" rather than a bid for BPTY itself?