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Playtech (PYTCY)
:PYTCY
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Playtech
(OTC:PYTCY)
79Outperform
Playtech (PYTCY) vs. S&P 500 (SPY)
Market Cap
$2.68B
Dividend YieldN/A
Average Volume (3M)0.00
Price to Earnings (P/E)23.5
Beta (1Y)1.20
Revenue Growth8.42%
EPS GrowthN/A
CountryUS
Employees8,300
SectorConsumer Cyclical
Sector Strength55
IndustryGambling, Resorts & Casinos
Share Statistics
EPS (TTM)0.80
Shares Outstanding154,647,130
10 Day Avg. Volume0
30 Day Avg. Volume0
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.54
Price to Cash Flow (P/CF)8.40
P/FCF Ratio15.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Playtech Business Overview & Revenue Model
Company DescriptionPlaytech (PYTCY) is a leading technology company in the gambling and financial trading industries. Founded in 1999, Playtech provides cutting-edge software solutions and services to online and retail gambling operators, including casino, poker, bingo, sports betting, live gaming, and other integrated systems. The company is renowned for its innovative products and commitment to delivering an omnichannel experience, which seamlessly integrates online and offline gaming platforms. Playtech operates across multiple markets, leveraging its sophisticated software and extensive network to enhance the gaming experience for operators and players alike.
How the Company Makes MoneyPlaytech generates revenue primarily through a B2B model, where it licenses its gaming software and platforms to operators in the gambling industry. The company earns money from licensing fees, which are often structured as a percentage of the operator's gaming revenue, known as a revenue share model. Additionally, Playtech offers software as a service (SaaS) solutions, providing operators with a suite of tools for managing their gaming operations, which can include player management systems, marketing and analytical tools, and customer relationship management solutions. Playtech also operates its own gaming brands and platforms, contributing to its revenue through direct player engagement. Strategic partnerships and acquisitions have allowed Playtech to expand its portfolio and market reach, further enhancing its revenue streams. The company's growth is supported by its commitment to innovation, regulatory compliance, and adapting to evolving market demands.
Playtech Financial Statement Overview
Summary
Playtech exhibits solid financial health with strong revenue growth, efficient cost management, and stable balance sheet metrics. The company has demonstrated operational efficiency, though past fluctuations in profitability and liabilities signal potential risks. Cash flow generation remains robust, yet a decline in free cash flow growth needs attention. Overall, Playtech is well-positioned, but should focus on sustaining profitability and cash flow growth to mitigate potential financial risks.Income Statement
Playtech has demonstrated strong revenue growth with a 6.5% increase from 2022 to 2023, showcasing a positive trajectory. The company maintains robust margins, with a net profit margin of 6.2% for 2023, indicating effective cost management. Additionally, the EBIT margin of 12.8% and EBITDA margin of 27.4% reflect strong operational efficiency. While the overall performance is commendable, the fluctuation in net income over the years suggests potential volatility in profitability.85
Very Positive
Balance Sheet
Playtech's balance sheet is solid with a debt-to-equity ratio of 0.41, indicating moderate leverage and a healthy equity cushion. The equity ratio stands at 54.3%, suggesting a stable financial structure. Return on equity is at 5.8%, showing modest profitability relative to shareholders' equity. The company has consistently improved its equity position over the years, enhancing financial stability. However, the historical volatility in liabilities warrants cautious monitoring.78
Positive
Cash Flow
The free cash flow to net income ratio of 2.06 in 2023 highlights strong cash generation capabilities relative to net income. However, the free cash flow growth rate has declined by 24.0% from 2022 to 2023, indicating pressure on cash flow generation. The operating cash flow to net income ratio of 3.49 emphasizes that operating activities are generating ample cash compared to net profits. Despite strong cash flow performance, the declining free cash flow growth suggests potential future liquidity constraints.75
Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.75B | 1.71B | 1.60B | 1.21B | 1.08B | 1.51B | Gross Profit |
| 1.75B | 1.71B | 1.60B | 1.21B | 1.08B | 1.51B | EBIT |
| 281.60M | 217.60M | 203.80M | 99.60M | 10.72M | 126.35M | EBITDA |
| 358.40M | 467.50M | 376.60M | 272.00M | 212.50M | 361.89M | Net Income Common Stockholders |
| 112.20M | 105.10M | 87.60M | 674.60M | -297.28M | -19.57M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 51.52M | 516.20M | 426.50M | 575.40M | 683.68M | 671.54M | Total Assets |
| 288.82M | 3.33B | 3.02B | 3.65B | 3.06B | 3.10B | Total Debt |
| 0.00 | 732.90M | 633.40M | 1.13B | 1.26B | 1.03B | Net Debt |
| -51.52M | 216.70M | 206.90M | 556.80M | 580.89M | 355.04M | Total Liabilities |
| 63.28M | 1.52B | 1.32B | 2.07B | 2.16B | 1.88B | Stockholders Equity |
| 225.53M | 1.81B | 1.70B | 1.58B | 899.59M | 1.23B |
| Cash Flow | Free Cash Flow | ||||
| 243.60M | 216.90M | 285.50M | 110.80M | 247.47M | 169.71M | Operating Cash Flow |
| 299.00M | 366.90M | 410.90M | 225.00M | 366.92M | 320.94M | Investing Cash Flow |
| -204.30M | -317.60M | -358.30M | -127.60M | -89.35M | -200.87M | Financing Cash Flow |
| -310.60M | 39.90M | -566.90M | -218.40M | 104.62M | -69.25M |
Playtech Technical Analysis
Positive
17.22
Price Trends
18.52
Positive
18.33
Positive
17.48
Positive
Market Momentum
0.02
Positive
35.62
Neutral
0.11
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PYTCY, the sentiment is Positive. The current price of 17.22 is below the 20-day moving average (MA) of 18.45, below the 50-day MA of 18.52, and below the 200-day MA of 17.48, indicating a bullish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 35.62 is Neutral, neither overbought nor oversold. The STOCH value of 0.11 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PYTCY.
Playtech Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $2.68B | 23.47 | 6.35% | ― | 8.42% | ― | |
78 Outperform | $5.57B | 10.91 | 34.76% | 1.13% | 5.13% | 2.04% | |
74 Outperform | $3.22B | 9.35 | 8.08% | 5.01% | -22.16% | 123.24% | |
62 Neutral | $1.17B | 79.30 | 6.23% | ― | -6.97% | -81.42% | |
59 Neutral | $11.76B | 10.11 | -0.70% | 3.92% | 1.27% | -16.30% | |
58 Neutral | $705.72M | 15.58 | 10.03% | 3.76% | -36.68% | -79.99% | |
39 Underperform | $46.33M | ― | -228.69% | ― | 4.67% | -349.76% |
* Consumer Cyclical Sector Average
Performance Comparison
PYTCY
Playtech
18.66
7.48
66.91%
BYD
Boyd Gaming
64.30
0.60
0.94%
CNTY
Century Casinos
1.44
-1.82
-55.83%
EVRI
Everi Holdings
13.52
4.37
47.76%
IGT
International Game Technology
15.42
-3.74
-19.52%
GDEN
Golden Entertainment
25.50
-7.63
-23.03%
Playtech Earnings Call Summary
Earnings Call Date: Mar 27, 2025 | % Change Since: -8.84% | Next Earnings Date: Sep 18, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong financial performance with significant growth and strategic transformations. However, challenges remain with underperforming assets, expected margin pressures, and market transitions in Asia and Brazil. Despite these issues, the overall outlook is positive with strategic initiatives and strong growth prospects.Highlights
Strong Financial Performance in 2024
Adjusted EBITDA reached €480 million, up 11% year-on-year, with B2B adjusted EBITDA growing by 22% to €222 million. Group revenue increased by 5% to nearly €1.8 billion.
Landmark Agreements and Strategic Transformation
Sale of Snaitech to Flutter for €2.3 billion is expected to complete in Q2 2025, which will result in a special dividend of €1.7 billion to €1.8 billion. Revised strategic agreement with Caliplay received Mexican antitrust approval.
Significant Growth in Key Markets
B2B revenues grew 10%, driven by regulated markets and a 126% increase in the U.S. and Canada. Latin America revenues increased by 15%, with significant contributions from Wplay in Colombia.
Strong Cash Flow and Debt Reduction
Net debt reduced from €283 million to €143 million. A new €225 million revolving credit facility is set to take effect post-Snaitech sale.
Innovative Use of AI and New Strategic Priorities
Playtech is leveraging AI for operational efficiencies and rolling out cross-product AI solutions. Focus on regulated markets, particularly the U.S. and Brazil, with new medium-term adjusted EBITDA targets of €250 million to €300 million.
Lowlights
Challenges with Underperforming Assets
Underperforming businesses generated €70 million in revenue but had €20 million EBITDA losses and €25 million negative free cash flow. The future of HappyBet is under review with potential closure or sale.
Margin Pressure in 2025
Margins expected to be lower in 2025 due to new terms of the Caliplay contract and accounting treatment of income from associates.
Asia Market Decline
Revenue in Asia declined, although it stabilized in the second half. China market contribution is now minimal due to strategic focus shift.
Impact of Brazilian Market Transition
Transition to a regulated market in Brazil led to high KYC rejection rates, impacting volumes and affecting revenues temporarily.
Company Guidance
During the call, Playtech provided detailed guidance and metrics regarding its financial performance and strategic priorities. For Fiscal Year 2024, adjusted EBITDA was reported at €480 million, an 11% increase year-on-year, driven by strong growth in the B2B division, which achieved an adjusted EBITDA of €222 million, up 22%. Group revenue grew by 5% to nearly €1.8 billion. The anticipated sale of Snaitech to Flutter for €2.3 billion is expected to close in Q2 2025, with a special dividend of €1.7 billion to €1.8 billion planned post-completion. Playtech's medium-term target for adjusted EBITDA of continuing operations is set between €250 million to €300 million, with a free cash flow target of €70 million to €100 million. The company reduced its net debt from €283 million to €143 million by the end of 2024, aiming for a net cash position by the end of 2025. Playtech also highlighted strong growth in the U.S. and Brazil, with U.S. revenue up 126% and plans to capitalize on strategic agreements and investments in emerging markets.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.