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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Playtech

July 2024

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • PTEC
  • Price:
  • 485p
Playtech has reported “solid” trading in the first four months of FY’24. Although only a modest 4% EBITDA growth is expected, it’s nevertheless on course to grow from €254m to €450m between FY’20-’24. The key issue remains the dispute with major partner Caliente, which has grown their Caliplay joint venture so well in Mexico but is withholding funds (now held in a Court mandated Trust account) from Playtech as part of its dispute; it wants to buy Playtech out but the latter says that option has expired. Peel Hunt expects it to be resolved but if Caliente were to continue not paying Playtech throughout FY 24, it estimates net debt would be €250m higher with net debt / EBITDA 0.7x versus 0.1x (albeit still manageable). Meanwh ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X

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