ALL -3.06%: first half result for the gaming technology business today was largely in line, however weakness in the mobile segment weighed on shares today. Revenue was slightly ahead of expectations, up 125 to $3,080m, Segmental EBITDA (Pre-corporate and FX costs) was up 8% to $1,305m, and in line with expectations. The core gaming business is doing well, winning market share with sales volume up 27%, while price is following it higher as well (+21%). It was the online and mobile segment that weighed though with Pixel seeing revenue fall 6% with a 7% fall in the Tier 1 market. The maintained guidance at the group level, however they reduce Pixel guidance to the lower end of previous expectations. Shares were strong heading into the update with the market expecting a strong core number based on US peers. The weakness elsewhere is what weighed on the company’s shares today. They recently announced the acquisition of US-listed NeoGames for $1.2b earlier this week, spending money they raised a few years ago for an acquisition that eventually fell through.
MM is neutral to marginally bullish ALL
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