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Owning the Italian gaming operator gives Playtech a strong position in a market with considerable online growth potential
Thursday 14 Jun 2018 Author: Lisa-Marie Janes

Gambling software supplier Playtech’s (PTEC) €846m acquisition of Italian gaming operator Snaitech is a game-changer according to broker Numis.

The company says Snaitech will help it establish a strong presence in Italy, which is Europe’s largest and growing gaming market with an underdeveloped online presence.

Numis analyst Richard Stuber has hiked his earnings before interest, tax, depreciation and amortisation (EBITDA) forecasts for Playtech by 12% to €400.1m for the year to 31 December 2018 and by 34% to €532.9m in 2019.

Stuber is confident Playtech’s acquisition will nearly double group sales and boost regulated market exposure to over 80% of revenue, as well as reduce dependency on Asia to approximately 17%.

These forecasts assume no contribution from Malaysia, which used to be a source of high-margin revenue for Playtech until regulatory crackdowns caused the company to issue a profit warning last November.

Other catalysts for Playtech besides a recovery in Malaysia include the potential demerger of financial division TradeTech. (LMJ)

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