Probability Share Discussion Threads

[rambutan2] 01/3/2013 08:35

Well, looks like PTEC could certainly afford to pay us, cash, and at a big premium...

Playtech, (LSE: PTEC) the international designer, developer, licensor and provider of software and services for the online, mobile, TV and land-based gaming industry, announces that it has been informed by William Hill Plc ("William Hill") that it will exercise its call option to acquire Playtech's 29% stake in William Hill Online.

Following completion of a valuation process, Playtech's stake will be acquired for approximately £424 million, representing a multiple of approximately 11.5 times normalised 2012 EBITDA. Playtech will continue to be entitled to a proportionate share of the FY2013 profits of William Hill Online, until the date of completion. Playtech has elected to receive the consideration entirely in cash. William Hill must complete the acquisition by the end of April 2013.

[yesrupnel] 28/2/2013 20:14

I wonder if Playtech could buy us out once it gets its money from its share of William Hill Online?

[trentendboy] 28/2/2013 15:04

End of April looking like the next RNS with the end of Q4 trading update.

It is positive news and an update that is needed to trigger any rise - seems to o good to be true (famous last words)

[rambutan2] 28/2/2013 02:28

Yes, am rather surprised that price hasn't shifted but good opp to pick up shares at only 4p more than Fid took in the recent placing.

[trentendboy] 27/2/2013 21:24

The lack of movement given US opening and the rise of the mobile/tablet is a little odd.

Overlooked or something else.

I will just keep buying at this price and wait for the rerating.

[trentendboy] 26/2/2013 12:09

Very good. A solid institution.

They are likely to accumulate.

[rambutan2] 26/2/2013 09:57

Nice to see that it was Fidelity that took the bulk of the placing and now have an 8.8% stake - i wonder what they are seeing which pi's seem to be missing!

[trentendboy] 22/2/2013 09:18

All this is good as we know that PBTY white label with a lot of the big players in mobile.

There is competition of course but PBTY are a world leader at the moment.

I suspect the share price will react to the next result and outlook. This just seems odd that we are not moving up ahead of results given the recent presentation.

I guess they are just too small. What we do know is that when these shares rise, they quickly (a little like GVC in some respects)

[rambutan2] 22/2/2013 01:06

Noted from LAD's finals out yesterday...

Mobile net revenue was up 93.6%. Mobile sportsbook revenues were 26.5% of the total sportsbook with over 40% of sportsbook customers using mobile during the second half. Mobile gaming net revenue grew 96.1%, with new tablet specific games and casino content including live dealer table games and slots. Our new mobile platform, on track to launch in Q2 2013 has been developed in parallel with new API technology, which will enable us to develop and launch multiple new mobile apps from H1 onwards.

[trentendboy] 15/2/2013 18:06

Thanks. Your views match my own.

Being already overweight pbty is the classic investors dilemma.

To diversify or specialise

[rambutan2] 15/2/2013 02:15

Trent, the CEO pointed out how previous generation businesses, in this case the online gaming ones, struggled with rapid change as they were split between supporting the old (cash cow) business while at the same time attempting to build a new one whose main source of customers was the old one. A classic business dilemma.

With regard to HTLM5, he said that all sorts of regulatory approval had been needed for lots of individual bits of the kit. A slow process.

To be fair to the CEO, he's bet his fortune on the business. The Playoo board member took shares rather than cash. And the FD-in-waiting said he'd consider a purchase - shows he'll be careful with the company's coppers!

I'm heavily overweight in them already and a very patient investor.

So far PBTY has attracted very little pi attention and yet it's in an area (mobile, gaming, apps) which excites punters. Assuming they arrive (eventually), with few loose shares around, the price would rise rapidly.

[trentendboy] 14/2/2013 18:42

Excellent post - it hints at a number of concerns and opportunities.

It is not hard for competitors to train up some new HTML5 coders and get them working on new programmes. They could just poach PBTY staff if necessary.

PBTY need to get good profits quickly to get on some more radars.

Interesting that he thinks the share price should be higher - they could put there money where their mouths are of course.

So Ram - you considering buying more now or holding for the time being? If you plan to wait what is the motivation?

The placing was at 64p so one would not expect any rapid upward move but it is good news on the institution front.

Interesting times.

[rambutan2] 14/2/2013 17:52

The CEO gave a very well received presentation last night. He was the most bullish I've seen him (in 6yrs) re the company's prospects as the stars finally seem to be aligning in PBTY's favour. As Charles freely admitted, some of this is down to good luck ie writing the software in HTML5 a few years ago, whilst no one else has - and it's not easy to do apparently. But also whilst PBTY has been waiting for things to take off, it has got to know the mobile mkt inside out, whilst none of the other players have bothered to - been too busy concentrating on online and each other. Now, with their customers rapidly moving to smartphone usage, and no time or skill set to do their own, PBTY is becoming the go to destination for them to get games. He said the managed content service for the big boys was lucrative. The presentation (post 711) illustrates all this nicely.

So, Charles suggests that we should be looking at PBTY as a mobile technology platform, not as a B2C revenue/profit play.

He said that a big name fund had taken the placing shares, but he couldn't reveal who it was - will have to wait for the rns.

All in all left me feeling pretty upbeat.

And yes, he said the current mkt cap was daft.

[yesrupnel] 14/2/2013 12:17

thanks ceohunter

[trentendboy] 14/2/2013 11:48

Nice.

Reading the presentation certainly encourages one to make an extra little investment - I am already overweight on PBTY that is the only problem.

Could fly on next results though as they are still a minow.

I would like more discussion on why they think they are the only ones doing this - competition must be intense. Do they really have leadership here?

[trentendboy] 14/2/2013 00:39

Interesting news - the affiliate route can work but as I am sure you know, click though is getting lower so punters are harder to pick up

[the analyst] 13/2/2013 23:39

I met with the marketing manager at the London Affiliate Conference last week - only had a quick chat, but first impressions was that he is a decent bloke, very personable and professional. I would certainly be happy to work with him if I did more mobile stuff.

He seemed to be pretty pleased with the way things were going, very excited about the prospects in Italy.

It was also good to see that every time I passed the stand, they were busy talking to someone, which couldn't be said for all of the stands. They were in a good location to get the lunch crowd, which was given out free for all attendees, so that's a lot of people (everyone, basically) passing by the stand.

Hopefully, their decision to finally attend this show brings in a few super-affiliates - it would have a massive effect on revenues...

[leedslad001] 13/2/2013 16:11

We have to sit and wait and add when we can, and we will all be handsomely rewarded imho.

[rambutan2] 13/2/2013 16:06

Hopefully some online slots players also try mobile slots...

The Italian gaming authority has published the data of the Italian online gaming market relation to year 2012 unveiling some very interesting information.

First of all, the massive success of the launch of online slots has been confirmed with an increase of the spending between the month of November and the month of December when such games had been launched of 40% reaching a spending during that month even higher that poker cash games.

[rambutan2] 13/2/2013 16:03

I note that Blackrock Smll Cos IT holds 1m...



And Throgmorton Trust (also managed by Blackrock) has over 0.5m...