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.

StockMarketWire.com
Video game developer Playtech downgraded its earnings guidance, blaming intense competition in Asian markets.

The company said it now expected adjusted Ebtida for 2018 to be in the range of €320m-to-€360m.

The guidance excluded a €42m one-off gain relating to the sale of shares in Ladbrokes and GVC. Playtech said it sold its 3.4% stake in GVC on 7 June for €222m.

Playtech said its current revenue run rate in Asia was 'materially below' both the average in the 2017 second half, and the average which was expected for the 2018 second half

If the current run rate continued, Playtech's expected revenue from Asia would be around €70m lower than original expectations.

'Given that the downturn in Asia has been relatively sudden and taking into account Playtech's centralised cost base, the vast majority of this revenue loss will drop through to adjusted Ebitda,' the company said.

'Clearly the recent trading performance in Asia is disappointing,' chief executive Mor Weizer said.

'We have taken steps to further support our partners in the region and we will continue to work to preserve our position in the face of an increasingly competitive environment.'

CitiGroup comment:
We estimate that the Plus 500 sale effectively reduces headline net debt in FY19e from €593 million to €421 million, after incorporating the gross sale proceeds and lower dividend income. We estimate that FY19e net debt to EBITDA will reduce from 1.4x to 1.0x.

We have a Buy rating on Playtech. At an 8.3x FY19e PE ratio, the shares are showing significant value at current levels. We see potential for positive catalysts to emerge over the next 12 months from contract negotiations with News UK that may improve the structure of the Sun Bingo agreement, potential entry into the US sports betting market and an Italy focused CMD scheduled for November 2018.

Credit Suisse today reaffirms its neutral investment rating on Playtech Ltd (LON:PTEC) and cut its price target to 520p (from 550p).

StockMarketWire.com
Online gambling software supplier Playtech stuck to its most recent full-year guidance, though trading in Asia weighed.

Ebitda for 2018 was still expected to reach between €320m and €360m, the company said.

In the business-to-business gaming division, revenue growth outside Asia was good.

Revenue from Asia had stabilised at an annualised run-rate of about €150m.

In the business-to-customer division, momentum reported in the first half by Snaitech had continued into the second half of the year.

The remainder of the B2C division also continued to perform in line with the group's expectations.

TradeTech's underlying key performance indicators had continued to display positive momentum, although market movements favoured customers, particularly in September and October, Playtech said.