Playtech shares jump 4% on better-than-expected Q1 2022 trading update
In Italy, Snaitech has seen the same trends continue from H2 2021, Playtech said, with a strong start to 2022 buoyed by its online business, recovery in the retail sector and favourable sports results.
Performance in Playtech’s B2B business, meanwhile, has been driven by strong momentum from the Americas, the supplier said, particularly by Caliplay in Mexico, in addition to strong performance generally across the wider B2B operations.
Playtech’s live casino business also signed several new licensees and launched new games during the quarter. Playtech has signed several new customers in the US and launched several new partnerships in Canada since the launch of the Ontario market.Regarding any potential acquisition offers from Hong Kong-based investment fund TTB Partners, Playtech said there had been “positive progress” in discussions with the group, but there can still be no certainty as to whether a concrete offer will be made.
If a bid does not emerge by 20 May, a new deadline of 17 June will be announced for TTB to make a firm offer for the business.
Further, Caliplay and Playtech continue to explore a possible SPAC transaction which “would allow Caliplay to enter the US market on an accelerated basis,” while the disposal of Playtech’s Finalto financial division remains on track to complete in Q2.
London-based investment bank Peel Hunt reiterated its Buy recommendation and 800p target price for Playtech in response to the update, as well as upgrading its full-year 2022 EBITDA forecast from €355m to €375m.
Peel Hunt analyst Ivor Jones said: “Playtech’s business is bouncing back more quickly than expected. Long-planned strategies including: Snaitech; live casino; US market entry; and Latin American partnerships, are all paying off.
“Shareholders should be demanding in relation to any offer price they are prepared to accept. We reiterate our 800p target price and Buy recommendation and sit back awaiting further developments.”