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.

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?'

LOL PTH it should read basing.

Glad youve seen it and told me. Suffering from lack of concentration and sleep due to dental probem. Hope its sorted by late wednesday.

PTEC broker upgrade......Playtech Ltd Buy 460 345.75 33.0% Investec Sp target 460p 33% upside

PTEC PLAYTEC.

Chart Breakout and looks like we
have plenty of blue sky before
resistance.

PRESS DIGEST - Financial Times - March 12
12 Mar 2012 - 04:10

BOOKMAKER WILLIAM HILL TO OPEN TALKS WITH PLAYTECH

William Hill will begin talks with Playtech this month to salvage the companies' online joint venture following a breakdown in relations last year. http://link.reuters.com/paq96s

William Hill to open talks with Playtech-FT
12 Mar 2012 - 00:38

LONDON, March 12 (Reuters) - William Hill is to open talks with Playtech this month to try to salvage the companies' joint online venture following a breakdown in relations last year, the Financial Times reported on Monday.

Executives from the UK's high street gambling operator and Tel Aviv-based Playtech will meet to discuss whether to end their joint venture or find "a third way", the newspaper said, citing a person familiar with the situation.

"It is imperative that all options are explored, including structural changes to the joint venture, something we are not opposed to," Playtech's chief executive Mor Weizman is quoted as saying the article.

William Hill wants strategic control over the fastest-growing division in its business by ending Playtech's veto over acquisitions and obtaining a commitment from the company not to work with high street rivals Ladbrokes , the FT said.

Playtech, which owns 29 percent of William Hill Online, has been the bookmaker's online partner since 2008, when it paid 250 million euros ($328 million) for its stake.

The deal allowed Playtech to provide the software for online casino and poker games and the personnel to drive customers to the bookmaker's online operation.

The companies could not be reached for immediate comment.

PTECH PLAYTECH

TIPPED TODAY in Investors Inteligence.

Wondered why their was so much volume
just seen the BUY tip.........below


We add two longs today.

One in Playtech, which is breaking the 320p resistance (see below).

14:50 Broker News & Views

NCB Stockbrokers has initiated buy on William Hill.

PLAYTECH PTEC

Brokers like PTEC and not suprising
on a miserly P/E of just 8.9 for 2012
far too cheap.

Historically trades on P/E of around
14. so plenty of upside potential.

Playtech Ltd

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

Panmure Gordon
13-03-12 HOLD 91.56 35.46 14.73 111.54 36.12 14.98
Peel Hunt
12-03-12 BUY 91.33 34.42 10.29 108.78 34.59 12.08
Broker Name Withheld 3
09-03-12 BUY 91.61 35.14 13.39 110.01 34.30 13.39
Goodbody Stockbrokers
08-03-12 BUY 33.89 12.53 34.74 13.12
Daniel Stewart
01-03-12 BUY 92.92 36.39 14.57 113.16 37.39 14.99
Numis Securities Ltd
30-01-12 SELL 95.56 37.80 19.28 108.97 43.08 21.96
Investec Securities
07-12-11 BUY 74.64 33.99 13.59 83.35 33.99 13.59
Evolution Securities Ltd
23-11-11 BUY 92.97 35.54 112.46 43.05
Execution Noble
22-09-11 BUY 29.92 39.39 18.62 33.36 46.56 22.01

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

Consensus 90.13 35.37 14.01 107.20 36.87 14.88

1 Month Change 1.98 -0.09 0.34 2.54 -0.27 -0.28
3 Month Change 4.10 -0.51 -1.23 9.31 -3.02 -1.47


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

Norm. EPS -11.42% 62.16% 4.25%
DPS 3.80% -11.82% 6.20%

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

EBITDA £73.56m £97.25m £115.06m
EBIT £58.91m £67.07m £81.82m
Dividend Yield 4.83% 4.26% 4.52%
Dividend Cover 1.37x 2.52x 2.48x
PER 15.08x 9.30x 8.92x
PEG -1.32f 0.15f 2.10f
Net Asset Value PS 66.63p p p

BUY confirmed on the weekly Candles.

Big bullish white Marabuzo which is
generally a very reliable signal.

http://www.britishbulls.com/weekly/StockPage.asp?CompanyTicker=PTEC&MarketTicker=Technology&Typ=S

THE WEEK AHEAD FR 9/03/2012 (from ample)

Thursday 15/03/2012

PLAYTECH

The same day Playtech (PTEC)updates investors with its 2011 full -year trading statement.

Concensus estimates for EBITDAto come in about 121.5millio Euros (£101million)
Aditionally, Collins Stewart is expecting the companyto end the year with 139 million euros of net cash.

Shares in the companyare trading on a 2012 P/E ratio ofabout 9 times, which Collins Stewart analyst Soimon Davies, believesis "toocheap".

" The past year has been transformational, with the PTTS, Mobenga, Geneity and Ash acquisitionsand £100 million fund raising. PTEC cemented its positionas UK B2B partner of choice, with the Gala Coral and paddy power contracts, while Videobethas rolled outa significantupgrade of the ladbrokesmachine estmate," Davies stated, reminding investors thatit also signed partners in the US(COPA)and mexico (Gruopo Caliente).

HE HAS A BUY RECOMMENDATION ON THE STOCK.

Results this morning easily beat forecasts...

http://www.investegate.co.uk/Article.aspx?id=201203150700193857Z

Playtech PTEC

Concensus estimates for EBITDA to come in about 121.5millio Euros

Actual ......

Adjusted EBITDA** increased by 22% to €125.5 million (2010: €103.1 million)

BEATS concensus nicely.

Financial highlights



§ Gross income* up 41% to €243.6 million (2010: €173.1 million)



§ Total revenues up by 46% to €207.5 million (2010: €142.3 million)



§ Adjusted EBITDA** increased by 22% to €125.5 million (2010: €103.1 million)



§ Adjusted net profit** increased by 21% to €112.8 million (2010: €93.2 million)



§ Net cash balances*** at year end of €137.3 million (2010: €68.5 million) following a £100 million fundraising in December, providing new capital to support joint ventures in newly regulated markets, and funding of targeted acquisitions



§ Adjusted basic EPS** of 46.2 € cents per share (2010: 38.5 € cents per share)



§ Recommended combined interim and final dividend for 2011 of 16.5 € cents per share



* Gross income is defined as total revenue plus the Group's income from associate



** Adjusted EBITDA, adjusted EPS and adjusted net profit are calculated after adding back certain non-cash charges, cash expenses relating to professional costs on acquisitions, legal costs relating to litigation with William Hill and prior year taxes (see reconciliation in Financial and Operating Overview below)



*** Net cash balances defined as cash and cash equivalents less bank borrowings