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.

MP, you are lonely, aren't you?

Moneyplus

Don't know if you are still in these after the October crash but, for the record, I have bought into this yesterday at 206p as the Tribeca acquisition looks substantially earnings positive. I reckon they've bought a good $15m plus of net profits on a PER of 6 or thereabouts, plus this gives PTEC scope to gain economies of scale and dominate the European gaming software landscape. Of course, someone might also be keen to take them out for a fat premium up the line.

PTEC being based in Cyprus, the tax charge is low too.

I took profits before the crash-was very tempted to buy back in but had no spare funds. I still think this company will do very well and it has bounced back nicely. good luck Bones.

Bought back into this one today. It has pulled off some great contracts--the chinese are gambling addicts! I should have bought back when they were hit by the US fiasco but better late than never---check it out ST.

bought 20,000 on wednesday..read the results and the company's foray into China is a whole new ball game IMO. The chart never reacted to the recent market wobble and the volume is excellent. Needs a little exposure in the wider market cos i think its an unknown quantity at present

Lucky you!-all I could afford is 1000 shares to buy and hold! I did nicely on this one last time I held it so hoping for good gains again. I haven't got the nerve for spreadbets or cfds- but wish I did sometimes.

www.chartbreakouts.co.uk appear very bullish as the price very very close to all time high..i reckon once the full benefits of its asian assault and market appreciation feed through then we should see a swift re-rating. slightly tinged by its association with the gaming sector which,which of course it is part of, but its revenues are sourced quite differently.

Pull back today-the herd has moved on. I hope to keep adding on dips.

Fantastic new win...

RNS Number : 8858O
Playtech Limited
16 March 2009



Playtech Ltd

('Playtech' or 'the Company')







Playtech enters regulated Spanish market with Casino Grand Madrid agreement







Playtech (AIM: PTEC), the international designer, developer and licensor of software to the online gaming industry, today announces that it has signed a new licensing agreement to supply its market leading online casino and poker products to Casino Gran Madrid ('CGM'), one of the largest and most prestigious land based gaming operators in Europe.

Under the terms of the license agreement, Playtech will provide CGM with its casino platform and poker product, through the iPoker network, as the operator launches its online operations.




Commenting on the agreement Mor Weizer, Chief Executive Officer of Playtech, said:




'We are delighted to have secured this agreement with one of Europe's largest and most respected land based operators. We expect this to be a significantly value accretive relationship, exemplifying our strategy to increase the number of regulated markets in which we operate.'




Both parties are committed to meeting all the Spanish regulatory requirements. CGM has also been working closely with Playtech's development and customer support teams to devise a suite of products tailored to meet the unique demands of CGM's players, offering a huge variety of games specifically designed to appeal to the gaming patterns of CGM's customer base.


Mr Weizer continued:

'As a leading industry player we are pleased to add further regulated markets to our sphere of operations. Playtech's gaming platform is supported by a transparent and efficient management system which an increasing number of customers view as integral to their future business plans.'




Jorge Casanova, Director of Information Systems of Casino Gran Madrid concluded:




'Our agreement with Playtech strengthens CGM's leading position in the Spanish casino market. With our casino brand and games available online we are delighted to be leading gaming development in Spain through Playtech's innovative, secure and transparent system.'







- Ends -

The majority of Brokers have a BUY rating on it..

Playtech Ltd

FORECASTS
2008 2009

Date Rec Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

Daniel Stewart
13-03-09 BUY 71.00 29.23 14.48 117.22 46.22 22.92

Numis Securities Ltd
12-03-09 BUY 68.46 28.72 14.82 112.75 45.40 23.16

Collins Stewart
09-03-09 BUY 73.34 30.95 122.77 49.71

Evolution Securities Ltd
02-03-09 SELL 82.67 34.43 17.95 97.82 38.85 20.34

2008 2009
Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

Consensus 70.81 29.57 14.65 114.99 45.81 23.04
1 Month Change -4.16 -1.68 -0.96 -1.41 -2.20 0.60
3 Month Change 1.08 1.75 -0.60 6.23 2.14 0.42


GROWTH
2007 (A) 2008 (E) 2009 (E)

Norm. EPS -36.67% 227.43% 54.92%
DPS 40.13% 121.97% 57.27%

INVESTMENT RATIOS
2007 (A) 2008 (E) 2009 (E)

EBITDA 23.09m 67.04m 115.18m

EBIT 19.61m m m

Dividend Yield 1.76% 3.91% 6.14%

Dividend Cover 1.37x 2.02x 1.99x

PER 41.52x 12.68x 8.19x

PEG -1.13f 0.06f 0.15f

Net Asset Value PS 14.26p p p

Broker news out this morning....

Collins Stewart has buys for Playtech and Healthcare Locums, a hold and 186p target for Stagecoach and initiates coverage of Hansen with a buy and 175p target and Clipper Windpower with a buy and 122p target.

Broker snap...

17-Mar-09 Playtech PTEC Daniel Stewart Buy 400.00p 543.00p - Reiteration

543p target.

A bit of weakness this morning therefore ideal time to be buying.

Brokers seem to like it.....

Playtech Ltd

FORECASTS
2009 2010

Date Rec Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

Daniel Stewart [R]
27-03-09 BUY 117.22 46.22 22.92

Collins Stewart
19-03-09 BUY 120.64 48.78 138.93 56.28

Numis Securities Ltd
19-03-09 BUY 114.16 45.97 23.45 134.71 53.47 28.14

Evolution Securities Ltd [R]
02-03-09 SELL 97.82 38.85 20.34

2009 2010

Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

Consensus 117.40 47.37 23.45 136.82 54.88 28.14
1 Month Change 1.00 -0.65 1.01 -6.61 -2.39 0.47
3 Month Change 8.64 3.70 0.83 10.46 4.39 1.48


GROWTH
2008 (A) 2009 (E) 2010 (E
)
Norm. EPS 83.35% 186.08% 15.85%

DPS 66.06% 113.96% 20.00%

INVESTMENT RATIOS

2008 (A) 2009 (E) 2010 (E)

EBITDA m 113.79m 133.68m

EBIT m m m

Dividend Yield 2.39% 5.11% 6.13%

Dividend Cover 1.51x 2.02x 1.95x

PER 27.72x 9.69x 8.36x

PEG 0.33f 0.05f 0.53f

Net Asset Value PS p p p

A P/E of just 9.7 for thnis year.

Way too cheap and undervalued.

Business Financial Newswire
"Gaming software group Playtech says full-year trading will be below current market expectations, owing to a slower than anticipated start to William Hill Online and the economic environment.

Adjusted EBITDA in the first half of 2009 is expected to be 43m to 45m.

Playtech says it is confident of delivering strong growth for the full year to December 2009 compared to 2008. 'However, owing to the slower than anticipated start to WHO and the general challenging economic environment impacting some of our licensees, the board believes that full-year trading will be below current market expectations.'

William Hill Online 'is making encouraging progress after a slower than anticipated start to the year due to a prolonged integration period and difficult trading conditions.

'This will impact our expectations for the first year's trading. However, Playtech remains confident that the WHO transaction will prove to be transformational for the company and will make an important contribution to earnings in 2009 and beyond.'

William Hill confirmed WHO is 'making good progress during an extensive integration period and in difficult trading conditions'. It says it remains comfortable with the market consensus for the online business in 2009 "

Nice bounce after anticipated mediocre results.

Business Financial Newswire
"Gaming software company, Playtech reports a pre tax profit of 32.8m for the six months to 30 June 2009 which is 39% higher than for the corresponding period last year.

Included in this year's figures was a profit from associate of 5.03m ( 2008 Nil).

Management say that adjusted net profit better represents the underlying results of the Group. Adjusted net profit for the six months ended 30 June 2009 totalled 43.0m (2008: 36.2m), an increase of 19%.

Total revenues during the period increased by 9.8% to 56.7m.

Cash and cash equivalents as at 30 June 2009 amounted to 48.7m (2008: 206.9m), representing 16.5% (2008: 75.0%) of the Group's total assets.

In October 2008, Playtech acquired a 29% stake in William Hill online at a cost of 177.7m cash.

The Board is proposing to pay an interim dividend of 8.9 cents per share. "

"Playtech (AIM:PTEC), is pleased to announce an interim dividend of 8.9 cents per ordinary share following the release of its interim results for the six months ending 30 June 2009.

The dividend will be payable on 23rd October 2009 to those shareholders on the Company's register as at the record date of 25th September 2009. The ex-dividend date is 23rd September. Currency election forms will be posted to shareholders on 4th September 2009 and must be returned by 1st October 2009. For any shareholders who elect to receive their dividends in sterling the conversion exchange rate from Euros will be set on 25th September 2009."

PTEC... PLAYTECH.

Like the look of the chart here and recovery might be on the cards although it is a very volatile stock.

Long Term Chart.



Short Term Chart.



Fundies.

A forward P/E of just over 8 going into 2012 is far far too cheap imo.

Playtech Ltd

FORECASTS 2011 2012
Date Rec Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

Panmure Gordon
28-03-11 BUY 102.00 39.50 20.50 112.00 42.90 22.30
Peel Hunt
25-03-11 HOLD 98.77 37.28 18.64 117.05 44.18 22.09
Daniel Stewart
21-03-11 BUY 96.27 37.76 18.92 106.64 41.82 20.74
Investec Securities
16-03-11 BUY 70.63 23.82 16.52 76.56 25.84 19.13
Evolution Securities Ltd
15-03-11 BUY 96.65 37.31 18.66 119.45 46.12 23.06
Goodbody Stockbrokers [R]
11-03-11 BUY 45.80 25.20 51.10 28.10
Numis Securities Ltd [R]
10-03-11 SELL 95.86 37.26 19.48 101.62 39.80 20.32
Execution Noble [R]
16-11-10 BUY 95.62 40.16 18.99 110.93 46.52 22.09
Collins Stewart [R]
02-11-10 BUY 34.62 38.08

2011 2012
Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

Consensus 92.96 36.76 19.64 106.41 41.82 22.46

1 Month Change 0.82 -0.52 0.08 4.77 -0.30 0.06
3 Month Change 1.94 0.58 0.60 4.71 1.27 1.12


GROWTH
2010 (A) 2011 (E) 2012 (E)

Norm. EPS -8.95% 62.40% 13.78%
DPS 3.80% 22.40% 14.36%

INVESTMENT RATIOS
2010 (A) 2011 (E) 2012 (E)

EBITDA m 98.77m 113.32m
EBIT m m m
Dividend Yield 4.65% 5.70% 6.51%
Dividend Cover 1.41x 1.87x 1.86x
PER 15.23x 9.38x 8.24x
PEG -1.70f 0.15f 0.60f
Net Asset Value PS p p p


Forward Statement. 10/03/2011

Outlook

The Company has made a good start to the year. With a number of licensees who launched in the second half of 2010 building out their operations, there is good revenue growth potential in the coming months. Playtech's ability to offer a full turnkey solution to licensees in newly regulated markets positions it well for what are changing market dynamics.

PLAYTECH PTEC Daniel Stewart Play Of The Year......


Cracking Casino!
Best of breed B2B provider


Investment Case

We expect PTEC will derive significant benefit from
regulating markets (Italy, Scandinavian, US), which will not
only diversify its revenue stream but further cement its
market position as best of breed B2B provider.
Our forecasts are underpinned by growth in licensees
particularly in Italy, France and Scandinavian markets over
the short to medium term, with further opportunities in
the US.
Our TP (541p) is DCF derived and implies c14x FY11E
earnings, c31% upside. This is further underpinned by a
5% dividend yield. BUY.
25 January 2011
Top Picks 2011
Playtech
Leisure
PTEC (FTSE AIM 100)
Buy Upside
30%
At a glance
2010E EPS 36.2c
2011E EPS 43.7c
Rating Buy
Price Target 541p
Michael Campbell - Equity Analyst +44 (0)20 7776 6571 michael.campbell@danielstewart.co.uk
Sales Team +44 (0)20 7776 6931 sales@danielstewart.co.uk
Price 416p
Target Price 541p
350
400
450
500
550
600
650
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Price FTALLSH relative to Price
Source: Proquote
Shares in issue 238.5m
Net Debt/(Cash) (33.4)m
Market Cap 992.1m
Enterp. Value 958.7m
NAV/Share 102.6p
Next Event Q4 KPI's - 25 January 2011
Net Debt is current year estimated
Forecasts (m) 12/08A 12/09A 12/10E 12/11E
Turnover 111.5 114.8 141.4 167.0
EBITDA 74.7 93.7 100.5 120.0
PBT 75.4 90.0 92.0 111.3
Tax (%) 2 1 2 2
EPS (c) 31.7 35.9 36.2 43.7
DPS (c) 15.2 18.3 19.9 21.9
Ratios (x) 12/08A 12/09A 12/10E 12/11E
P/E 15.3 13.5 13.4 11.1
EV/EBITDA 15.3 11.9 11.3 9.1
Yield (%) 3.1 3.8 4.1 4.5
Price/NAV 4.9 4.5 4.2 3.7
Data is adjusted
Company Description
Online betting & gaming software provider.
www.playtech.com
46 Playtech | Leisure | 25 January 2011
Investment case
Growing exposure to regulated markets. Italy
cash poker & casino, Scandinavian & US
markets further opportunities.
Regulation
Playtechs revenues are well diversified from a geographic point a view, however we
estimate c60% of revenues are derived from unregulated markets. Playtechs B2B
model however makes it easier to exchange non-regulated revenues for regulated
revenues.
We see significant opportunities for Playtech not only across changing European
markets (Italy online casino and cash poker) but also in the liberalising US and
Scandinavian markets (RAY + Unibet recently).
M&A
Playtech is more than likely to be an acquirer as opposed to a target, recent
acquisitions GTS and Virtue Fusion bears testament to this. It is however not unlikely
that a larger online operator or bricks and mortar casino would make a bid for the
pure play B2B provider at some point.
We view the recent bid for 888 as speculative and were PTEC to make a bid we
believe it would be to acquire Dragonfish, its competitor. We believe PTEC has no
interest in the pure play (B2C) operator side of the business. Were it to acquire 888,
PTEC would more than likely sell of the B2C side and consolidate Dragonfish. This
would further strengthen PTECs position as the no1 B2B operator in the market.
Recent events
Playtech is targeting the Scandinavian and Italian markets. It recently signed RAY
and Unibet (bingo license agreement through Virtue Fusion) to its network, which we
believe could be a significant step in securing further licensees in the growing
Scandinavian market. In Italy it signed Buongiorno (online casino for winga.it) and
Codere Interactive to its Italian bingo platform the fourth Italian bingo operator on the
PTEC platform. This gives PTEC significant market share in the bingo vertical. We
expect to see PTEC continue signing new licensees to its network as markets
regulate.
Risks
The two largest licensees account for a third of revenue, and the top 15 licensees for
c75% of revenues, therefore a loss of a key licensee would have an adverse impact
on profits and cash. The concentration of clients should dilute over time as PTEC
adds larger licensees to the network, diversifying the revenue stream further.
Furthermore, Playtech is an operationally geared company (majority of costs are
fixed and relate to staff costs) therefore a sharp decline in revenue would have a
greater negative impact on profits, but conversely any increase in revenue has a
greater positive impact on profits. We estimate that c70% of revenues drop through
to the profit line.
Strategy for swapping non regulated
revenue for regulated revenue...
An acquirer as opposed to a target in
our view..
Recently signed RAY and Unibet and
licensees in Italy ...
Relies upon small number of licenses
for majority of revenue at present...
Playtech | Leisure | 25 January 2011 47
Forecasts & recommendation
Forecasts
Playtech derives its revenues form license fees on a revenue share basis (can vary
between 15 - 30%) with licensees. Therefore the number of licenses and the level at
which revenue share agreements are negotiated drives revenues for the business.
Playtech has c85 licensees where the top 2 generate one third of revenues and the
top 15 three quarters of revenues. We expect the business will further diversify its
reliance on a number of key licensees as it adds further licensees to the network in
regulating markets.
Table 11: DS NGR forecasts (10E - 12E)
(m) 2010E 2011E 2012E
Poker 28.4 30.1 32.0
Casino 93.3 104.2 114.7
Other 19.7 32.6 36.3
NGR (ex-WHO) 141.4 167.0 183.0
Source: Daniel Stewart
At the EPS level we forecast 37.6c for FY10E (1H 20c, so PTEC need only achieve
17.6c in 2H in order to meet our FY10E forecast). For FY11E our EPS is 44.0c and
48.7c for FY12E a reflection of mooted growth in poker, offset by stronger growth in
casino and bingo.
DS vs. Consensus forecasts
Our forecasts are broadly inline with consensus estimates, though toward the top end
of the range for FY11E and FY12E. We factor in continued pressure on Poker
revenue though cushioned by new licensees signed on the French poker network
and cash poker & casino in Italy. The biggest upside risk to our forecasts is PTEC
signing a significant poker deal in the US. Casino should offset the weaker
performance from poker (Italian market, Betfair, RAY) and bingo (Virtue Fusion)
should offset any poker weakness
Outlook and recommendation
Playtechs Q310 outlook statement read well, where the company reported a strong
start to Q410, daily average activity for the first 31 days was up > 25% on Q409 and
7% above daily average activity in Q310, which underpins our forecasts.
We expect to see continued growth in online casino and bingo when Italy and France
come online (2011) this is further underpinned by opportunities in the Scandinavian
and US markets. Regulation, M&A, new licensees and a move to the main list are all
catalysts for the share price.
Our price target (541p) is DCF derived implying c14x FY11E earnings, undemanding
in our view. We initiate with a buy recommendation
Number of licenses and revenue share
drives revenues...
Forecasts at the top of the consensus
range, underpinned by opportunities in
Italy, Scandi & US markets...
Strong momentum into Q4 underpins
our forecasts...
...supported by opportunities in Italy,
France, Scandi and US markets
541p TP ~ Buy PTEC

48 Playtech | Leisure | 25 January 2011
Key Assumptions

12.8% CAGR in NGR FY10E FY12E
Income (m) 12/08A 12/09A 12/10E 12/11E
Turnover 111.5 114.8 141.4 167.0
Gross Profit 111.5 114.8 141.4 167.0
EBITDA 74.7 93.7 100.5 120.0
EBIT 64.7 69.2 70.2 89.0
PBT 75.4 90.0 92.0 111.3
EPS (Adj.) (c) 31.7 35.9 36.2 43.7
EPS (c) 17.9 29.0 28.9 36.7
DPS (c) 15.2 18.3 19.9 21.9
Ratios (x) 12/08A 12/09A 12/10E 12/11E
P/E 15.3 13.5 13.4 11.1
EV/EBITDA 15.3 11.9 11.3 9.1
Div. Yield (%) 3.1 3.8 4.1 4.5
P/NAV 4.9 4.5 4.2 3.7
EV/Gross profit 10.2 9.7 8.0 6.5
EV/EBIT 17.7 16.1 16.2 12.2
P/FCF 17.4 18.5 15.4 12.6
FCF Yield (%) 5.7 5.4 6.5 7.9
NAV (c) 97.9 108.8 116.5 130.5
Cash Flows (m) 12/08A 12/09A 12/10E 12/11E
Op.CF 62.9 69.6 86.5 106.0
FCF 65.4 64.8 78.7 96.2
FCFPS (c) 27.8 26.1 31.5 38.4
Balance Sheet (m) 12/08A 12/09A 12/10E 12/11E
Fixed Assets 235.2 252.0 278.5 280.0
Current Assets 44.4 75.8 60.1 110.4
Current Liabilities (17.7) (32.8) (28.6) (23.9)
Capital Employed 261.9 295.0 310.0 366.6
Long-term Liabilities (31.7) (25.1) (18.5) (39.3)
Net Assets 230.2 269.9 291.6 327.3
Net Debt/(Cash) (31.6) (58.7) (39.2) (85.8)
Data is adjusted
DSC EPS is fully diluted
Recent News / Events
3Q10 KPIs 2 November 2010
2010 Interims - 26 Aug ust 2010
Management Team
Mor Weizer CEO
Shuki Barak - CFO
Major Shareholders
Brickington Trading 40.4
Fidelity 10.0
Capital Research 5.5
Blackrock IM 5.1
Blackrock advisors 4.1
Interexpo Trading 3.6
Consensus and DSC Estimates
12/10E
PBT(m)
DSCe 92.0
EPS (c)
DSCe 36.2
DPS (c)
DSCe 19.9
Source: Fidessa

What the heck is a 'baing bottom?'