The revenue boost at Playtech (PTEC), a supplier of online gaming software, was largely due to a full period’s contribution from Snaitech, the group’s business-to-consumer (B2C) division based in Italy. Management called Snaitech the “standout performer”, with adjusted cash profits up by more than a quarter to €74.7m (£67.7m), driven by strong online revenue growth of 22 per cent. Encouragingly, management said there has been “no impact” from the advertising restrictions in Italy that came into effect in July.
In the business-to-business (B2B) division, Asia underperformed even more than analysts had expected. Management now expects revenue of €115m for the full year compared with previous guidance of €150m, but has maintained its adjusted cash profits forecast of between €390m and €415m. Analysts at Peel Hunt believe this implies a material upgrade to expectations for the higher-quality part of the business, especially in relation to Snaitech. B2B should also benefit from the new agreement signed in the first half to provide GVC with some of its brands.
Analysts at Peel Hunt expect pre-tax profits of €223m during 2019, giving EPS of 62.4¢, increasing to €235m and 66.3¢ in 2020.
| PLAYTECH (PTEC) | ||||
| ORD PRICE: | 383p | MARKET VALUE: | £1.18bn | |
| TOUCH: | 382.7-383.3p | 12-MONTH HIGH: | 581p | LOW: 357p |
| DIVIDEND YIELD: | 4.3% | PE RATIO: | 46 | |
| NET ASSET VALUE: | 416¢* | NET DEBT: | 23% | |
| Half-year to 30 Jun | Turnover (€m) | Pre-tax profit (€m) | Earnings per share (¢) | Dividend per share (¢) |
| 2018 | 436 | 124 | 35.7 | 12.1 |
| 2019 | 736 | 28.0 | 5.5 | 6.1 |
| % change | +69 | -77 | -85 | -50 |
| Ex-div: | 19 Sep | |||
| Payment: | 22 Oct | |||
| *Includes intangible assets of €1.64bn, or 530¢ a share £1=€1.10 | ||||
