Playtech Share Discussion Threads

[farrugia] 01/11/2023 15:17

this stock at this valuation is easy prey for a USA predator.

[farrugia] 24/10/2023 08:56

i bought a starter position on this for now modest. No doubt the troubles in Israel are probably putting pressure on the stock price so its an opportunity. The last time I dealt on this was when it was getting acquired - at that point i immediately offloaded.

[the white house] 09/10/2023 15:37

Tech unit Israel

[jsg123] 09/10/2023 15:15

I'm waiting to find out also, but this slide down today on such small volume often 3 figure sells is starting to worry me.
I may email IR and ask for a layman's explanation.
Will post if I get a response.
Ceo bought 40 odd k at quid so he's well down on that!!

[popit] 09/10/2023 15:05

So nobody seems to have a clue what this Caliplay “option” actually means

[popit] 06/10/2023 16:33

RNS

6 February 2023

Playtech plc

('Playtech' or the 'Company')

Update on strategic agreement with Caliplay

As part of ongoing discussions with Caliplay in relation to the parties' strategic agreement, Playtech plc (LSE: PTEC) announces today that it is seeking a declaration from the English Courts to obtain clarification on a point of disagreement between the parties.

Caliplay is a highly valued customer and partner of Playtech, and has been a highly successful and rapidly growing business. A declaration is being sought in order to provide clarity for both parties. The matter in disagreement relates to whether Caliplay still holds an option to redeem the additional services fee element of the strategic agreement (the "Option"). The Option was structured such that the amount payable by Caliplay to Playtech upon exercise would either be agreed between the parties, or failing which, determined by an independent investment bank valuing Playtech's current entitlement to receive the additional services fee until 31 December 2034. For the six months ended 30 June 2022, the amount of this services fee was EUR34.4 million (EUR22.3 million for the six months ended 30 June 2021) and the business has continued to perform strongly since then.

The Option is stated as being exercisable for a period of 45 days following the approval of the audited accounts of Caliplay for the year ended 31 December 2021. Playtech believes the Option has expired and referred to its expiry having taken place in its interim report for the six-month period ended 30 June 2022, which was published on 22 September 2022. Whilst Caliplay has not sought to exercise the Option to date, Caliplay has made it clear that it considers the Option has not yet expired.

Playtech hopes to obtain clarification from the English courts and further updates will be provided, as required.

———;——̵2;——R12;——212;———————————;——̵2;——R12;—-

I have read the RNS from 6th February and the situation is still very unclear.

Can anyone explain it without the legalese?

Caliplay holds an option to redeem the service fee? What does this even mean? Does it mean Caliplay can refuse to pay the €34 million?

What does the option allow Caliplay to do? Does it allow Caliplay to pay zero or to pay less than €34 million?

And why would Playtech have agreed to such an unclear agreement that has now ended up in a Mexican court and is likely to end the JV at a great cost to Playtech?

[jsg123] 06/10/2023 14:51

Look at the RNS from 6th February, I just very very briefly summed up

[popit] 06/10/2023 13:26

“From what I can ascertain it's about exercise of options after a period resulting in fees payable by Calipay to Playtech for approx 34 million.
And Calipay feel that the options have not been exercised.”

This explanation is not very clear

Can anyone explain this dispute clearly? It is not very clear from the press reports

Who is owing who the money and who is complaining?

Does Caliplay owe Playtech £34 million?
Have they already paid it?
Are they refusing to pay it?
Do they want the money back?

And surely if Caliplay want to end the JV they will have to pay Playtech a lot of compensation based on the loss to Playtech of future profits?

Or is this court in Mexico just going to side with Caliente and leave Playtech with nothing?

Caliente seem to be owned by the former President of a Mexican state and so it is not very difficult to imagine that Playtech will be left with nothing

[jsg123] 06/10/2023 11:16

I've only been in a few days, so losses insignificant , but it was looking very enticing even at 450 before I jumped in.
It's hard to know when to add further.
Also I keep hearing the only way to deal with the rising treasury yields situation is for a full blown equity market crash.

[rimau1] 06/10/2023 11:08

At a marketcap of £1.2bn the B2C business is in for free.

[rimau1] 06/10/2023 10:56

Sounds about right. I guess another factor weighing this down is the bidding war with FLTR for Planetwin. The risk of overpaying plus I suspect we may need a rights issue to part fund the deal if we are successful. The Caliente fall-out is poor timing in this regard. I am biased but at this price i would swoop in for Ptec just for the technology and Snaitech. Averaging down here slowly.

[jsg123] 06/10/2023 10:50

So the revenue last year from the Americas including Caliente was 144 million out of total revenue of 1.6 billion, but because Caliente has been the main driver for growth, the market has punished it considerably in the last month.
From what I can ascertain it's about exercise of options after a period resulting in fees payable by Calipay to Playtech for approx 34 million.
And Calipay feel that the options have not been exercised.
Does that about sum it up?

[rimau1] 06/10/2023 10:34

Its the JV in mexico, caliente. The JV partner Caliplay is trying to extract playtech from the JV. The loss to Playtech would be the annual service revenue fee and the value of its share in the JV business. Not insubstantial hence the significant mark-down over the past month. This is the problem with JV's when partners fall-out.

[jsg123] 06/10/2023 10:22

This has to be related to the legal action.
Anyone know how big the customer is and what sort of numbers are involved?

[bigjay99] 06/10/2023 09:38

I bet those activist shareholders wish they'd voted in favour of that 740p offer last year. I know I do.

[bulltradept] 06/10/2023 07:13

Keeps falling....

[deanowls] 18/9/2023 14:51

It’ll be more exciting it hard rock get Florida over the line this week. Massive market.

[bigjay99] 13/9/2023 10:39

What on earth is happening these past few days? Is this the market responding to Mor's comments about grey and black markets? How dare he consider ethics as part of a sustainable business strategy - Jordan Belfort would be ashamed :|

[rimau1] 07/9/2023 18:01

Well, the slowdown didn’t materialise. US expansion continues, Snaitech remains No1 in Europe’s largest gambling market and Cali/Brazil have explosive potential. Balance sheet at 0.6x leverage leaves room for bolt-on’s. I don’t see any negatives here and priced at 10x 2024 earnings this is way too cheap.

[rimau1] 10/8/2023 07:50

FLTR Italy online reported strong H1 revenue growth via newly acquired Sisal of 17% with a positive outlook. PTEC have been messaging that they expect growth to normalise so hopefully not yet!

[oggyrocks] 24/5/2023 06:29

Very positive trading statement.

Must be ripe again for somebody to try and take this over.

[rimau1] 16/5/2023 15:05

I agree with you both. For me Its a private equity gimme. Separate Snaitech and sell it off and keep B2B ex Americas and B2B Americas.

[niklol] 16/5/2023 13:36

Been thinking the same

[oggyrocks] 16/5/2023 12:58

Somethings up here. Can’t find any news anywhere.

It was well tipped about a month ago, but this recent rise looks exciting. Maybe takeover again soon. This share is so leaky, insiders making most of it.

[rimau1] 10/5/2023 09:54

Well hello £6, long time no see.