Gambling technology company Playtech (PTEC) said the excellent start to trading in 2022 had continued across the first quarter, producing adjusted EBITDA of more than €100 million.
If current trends continued through the rest of the 2022 financial year it would imply full-year EBITDA (earnings before interest, taxes, depreciation, and amortization) north of €400 million.
This would represent close to a 30% increase year-on-year and is significantly above current market expectations. According to Stockopedia and Refinitiv data, the market is forecasting net profit of €103 million for 2022.
Taking the same proportion of net profit to EBITDA as achieved in 2021 implies a possible net profit of around €165 million. The shares reacted positively on Thursday, gaining 5% to 541p.
STRONG BUSINESS MOMENTUM
The business-to-business division which generates the bulk of group revenues experienced ‘very strong’ momentum from the Mexican operation under the Calipay brand.
The Italian brand Snailtech which operates in the smaller consumer facing division made an excellent start to the year driven by its online business, a recovery in retail and favourable sporting results.
Playtech said the strong start gave it great confidence in the prospects for the year but the company remained cautious due to the uncertain macro backdrop.
TAKEOVER UPDATE
Chief executive Mor Weizer notified the board on 21 February 2022 that he wished to explore participating in the investor group formed and advised by TTB in considering a possible offer for the group.
Today the company said it had made ‘some positive progress’ in discussions with the TTB investor group. So far however, no offer has been made and there is no certainty an offer will be made or the terms on which an offer will be made.
TTB has indicated to the board that it expects any offer made to be above the recommended 680p per share cash offer made by Australian gambling company Aristocrat, announced on 17 October 2021.
The Aristocrat offer failed to garner sufficient shareholder support to consummate the deal.
Playtech confirmed the disposal of Finalto remained on track to complete in the current quarter subject to receiving to receiving the final two regulatory clearances.
