Playtech expects to exceed analyst forecasts
Trading update points to successful mobile and sportsbook rollouts and new licensees as reasons to be confident
Playtech has revealed it expects to exceed revenue and EBITDA forecasts after noting the positive impact new licensees and product rollouts are having on the business.
The Israeli software supplier has sealed several new licensees in the build up to this summer’s FIFA World Cup, having signed deals with Holland Casino ahead of Dutch egaming legislation and Latvia and Estonia-facing Olybet.
The company is also believed to be leading the race to secure a potentially lucrative supplier contract with Greek gambling monopoly OPAP.
Playtech has also completed mobile and sportsbook product rollouts with a number of its licensees since its last trading update in October, most notably the launch of Ladbrokes’ new Mobenga mobile sportsbook in December last year.
Other existing licensees to receive new Playtech-developed products include Coral, who released a new native tablet app, and Betclic, which launched an Everest-Poker branded poker app, both in December.
However, the trading update failed to give any further indication as to what the company plans to do with its net cash balance of roughly £500m, despite CEO Mor Weizer having previously indicated that potential bolt-on acquisitions would be sought.
Labelling the trading update as “short but robust”, Panmure Gordon analyst Simon French said that its EBITDA forecast of 175m for the year remains unchanged. “For 2014 consensus forecasts are 178.8m and our forecast of 182.3m is slightly above consensus and unchanged,” he said.
Following the update, Playtech’s share price slipped 4p to 700p during early morning trading.
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