Analysis of Playtech share price

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Are you one of the numerous investors interested in investing in the Playtech Company and wish to learn more in order to complete comprehensive analyses of its share price? In this article we offer you practical information that will assist you in studying and anticipating movements in this company’s share price. You will find useful information on this company and its activities as well as a detailed summary relating to its competitors on the market and recent partnerships. To conclude we will explain how to achieve a comprehensive fundamental analysis with details of the factors you need to monitor in priority.

Elements that can influence the price of this asset:

Analysis N°1

It is particularly important to pay great attention to changes in laws and regulations relating to online games and gambling which differ according to the individual countries.

Analysis N°2

You should also monitor the geographical diversity of the services offered by Playtech and its penetration of new strategic markets where it is currently absent.

Analysis N°3

The partnerships implemented by this group that can enable it to offer more attractive products and services or gain new users. It could therefore be advantageous to monitor the events and announcements of this company and thereby learn of its strategic alliances in advance.

Analysis N°4

Of course, as the competition is fairly strong in this activity sector this is also an important factor to consider when completing a fundamental analysis so we would monitor the market parts of each major competitor.

Analysis N°5

You should also monitor the economic and financial results of this company which are published each quarter and year and ensure these are compared with the objectives fixed by the company and the results predicted by the analysts.

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General presentation of Playtech

Obviously, a clear understanding and basic but thorough knowledge of the Playtech Company and its activities is essential if you wish to be able to understand the challenges this company faces and its growth possibilities for the future. Here therefore is some important and precise information about this company’s activities that enable it to generate its turnover.

Playtech is a British company specialised in online leisure and entertainment. More precisely this group is currently the world leader in the development and distribution of online games and related software.

To better understand the activities of the Playtech Company it is possible to divide them into sectors according to the turnover generated by each as follows:

  • Firstly, the publishing of online games software represents the majority of this group’s activities and generates 69.1% of its turnover. This notably includes casino games, sports betting, bingo, online poker and other similar games activities.
  • We then find the services activities that generate 11.7% of this group’s activities. These include marketing services, assistance, hosting services and network management, and payment services amongst other things.
  • The financial services activities generate 10.5% of the Playtech Company’s turnover.
  • Finally, the software publishing activities for virtual casinos generates the remaining 8.7% of this company’s turnover.

It can also be advantageous to be aware of the geographical distribution of the activities and revenue of the Playtech Company. This company achieves 29.5% of its turnover in the United Kingdom, 35.1% in the Philippines, 3.8% in Malta, 3.4% in Gibraltar, 2.9% in Italy, 2.4% in Spain, 0.4% in Antigua and 22.5% from other countries around the world.

Analysis of Playtech share price
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The major competitors of Playtech

We now offer you the opportunity to learn more about the competitive environment in which the Playtech Company operates its activities through a rapid but concise presentation of the principal competitors in this company’s activity sector:

Golden Entertainment

This American games company is based in Nevada and operates casinos and money gaming platforms. The company was created in 2015 from the merger of Golden Gaming and Lakes Entertainment. Nowadays it is one of the largest players in this activity sector worldwide. It notably acquired the American Casino & Entertainment Properties Company in 2017 for the amount of 850 million dollars. The group also owns 10 hotel complexes.

Penn National Gaming

This is another American company that is specialised in gambling, notably in the casino and horserace betting sectors. This company’s registered office is in Pennsylvania.

Flutter Entertainment

 This American company was previously known as Paddy Power Betfair and is a worldwide renowned gaming and gambling company.

Station Casino

Finally, the American group Station Casino is a games, hotels and casinos group based in Las Vegas. After purchasing some building land on the outskirts of Las Vegas the group diversified into the management of third party casinos and online casinos. Part of this company’s capital is held by the group Red Rock Resorts Inc. which is a listed portfolio company quoted on the Nasdaq stock exchange.

The major partners of Playtech

Of course, the Playtech Group regularly implements strategic partnerships that enable it to increase its revenue and profitability. Here as follows are two specific examples of recent partnerships that will assist you in better understanding the advantages of this type of operations.

Flutter Entertainment

In 2021 the group notably decided to extend its partnership with Flutter Entertainment. The new agreement would enable it to use Flutter brands such as Paddy Power, Betfair and Sky Casino. The objective of this partnership was therefore to supply exclusive studios for these three brands. The Playtech support, once implemented, would be accessible to all the Flutter operations throughout Europe.

Novomatic Americas

Still in 2021 the group decided to collaborate with Novomatic Americas with an agreement for delivering Playtech sports betting kiosk systems with the American sports betting kiosks of Novomatic, ActionBook which operates in 11 states of the United States. This partnership would enable both companies to market their sports betting management software and the mobile Playtech users with over 10,000 kiosks managed throughout the world. Through this partnership Playtech could continue to develop and strengthen its visibility on the North American market.

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Frequently Asked Questions

When and how did the Playtech Company come into being?

It was in 1999 that the Playtech company was created by Teddy Sagi. Since then the company has made its IPO onto the London Stock Exchange when it raised funds of over 295 million dollars. At this time, in 2006, the group’s value was estimated at nearly 550 million pounds with a float of 257 pence. However, fairly rapidly, and after the implementation of the SAFE Port Act, the Playtech share price experienced a fall, of 40% in one day in fact.

How to successfully anticipate a rise or fall in the Playtech share price?

To be able to anticipate a rise or fall in the Playtech share price you will need to know which factors could influence the investors’ interest in this asset. For this you should of course complete several analyses including a technical analysis that studies the historical share price of this company using stock market charts, and a fundamental analysis that studies events and announcements relating to the markets and activity sector.

Who are the major shareholders in the Playtech Company?

The share capital of the Playtech Company is mostly held by large private investors including T Rowe Price International with a 10.3% shareholding, Setanta Asset Management with 8.26%, PAR Capital Management with 5.01%, Aberdeen Asset Management with 4.21%, Fidelity Management & Research with 3.56%, the Vanguard Group with 2.90%, Dimensional Fund Advisors with 2.90% and Fidelity Asset Management Canada with a 2.88% shareholding.

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The content in question is provided for information purposes only and should not be considered as investment advice. Past performance is no guarantee of future results. The trading history is less than 5 years old and may not be sufficient to serve as a basis for an investment decision.

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