if the market expected more the shares would go down, thankfully ALL met expections and delivered a solid result.
Margin improvement was excellent and balance sheet will be near net cash again with Plarium sale.
key competitor LNW missed expectations and faces challenges/costs with its most promising game due to ALL litigation.
Outlook and execution of ALL Interactive division key to the re-rate of the multiple. The cash from Plarium sale needs to be invested well.
Big Fish purchase unfortunately was a bit of a flop, with the casino element now the only thing valuable to ALL.
I thought at the time the push into non gambling digital games didn't come with any competive advantage, the company has admitted as much now with this restructure.
Valuation is now punchy in the mids 20s PE, historically its been in the low 20s.
ALL Price at posting:
$66.58 Sentiment: None Disclosure: Held
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