To an extent, these impressive figures were overshadowed by this month's talks between gaming software maker Playtech and William Hill to resolve tensions over their joint online gaming venture. Moreover, the dividend has been rebased and clear catalysts for a re-rating aren't easy to spot – despite the modest share price rating.
Regarding the talks, it's unclear whether William Hill will buy Playtech's share of the venture when that option falls due next year. Chief executive Mor Weizer says Playtech hasn't yet received a valuation for its portion, although some City analysts estimates it's worth a hefty £350m. Playtech could well command such a premium price after the joint venture's revenues rose 17 per cent to €36m (£30m) year-on-year.
Meanwhile, at the product performance level, Playtech's casino unit sales rose 18 per cent to €114m, while the bingo operation delivered a sales hike of 39 per cent. The videobet offering, meanwhile, saw sales soar to €7.8m from €2.0m. Although following US regulatory action in April against US-facing poker sites, the poker unit's sales slipped 20 per cent. Playtech also spent €97.2m on acquisitions and raised £100m via a placing in December to fund further deals.
Prior to these figures, Peel Hunt expected 2012 EPS of 41.6¢.
PLAYTECH (PTEC) | ||||
|---|---|---|---|---|
| ORD PRICE: | 333p | MARKET VALUE: | £963m | |
| TOUCH: | 331-333p | 12-MONTH HIGH: | 380p | LOW: 210p |
| DIVIDEND YIELD: | 4.1% | PE RATIO: | 13 | |
| NET ASSET VALUE: | 166¢* | NET CASH: | €137m | |
| Year to 31 Dec | Turnover (€m) | Pre-tax profit (€m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2007 | 65.7 | 26.8 | 12.3 | 10.2 |
| 2008 | 111 | 41.5 | 17.9 | 15.2 |
| 2009 | 115 | 70.3 | 29.0 | 18.3 |
| 2010 | 142 | 67.0 | 26.7 | 19.0 |
| 2011 | 207 | 78.7 | 31.8 | 16.5 |
| % change | +46 | +17 | +19 | -13 |
Ex-div: 25 Apr Payment: 31 May *Includes intangible assets of €365m, or 126¢ a share £1=€1.20 | ||||
