Iloveicecreams, The RMG opportunity is still nascent and there are other big players a few years ahead. The Playtech purchase was meant to mitigate this, however in hindsight the valuation was to much and their was clearly an "underbelly" to Playtech ALL was keen to jettison, though maybe others not so much. I think ALL dodged a bullet on Playtech, but the cost of this is the company now behind in RMG for the time being.
ALL have a good lease (participation) business so that next year if there is a downturn in casino capex the company can still do quite well as gaming revenues are fairly resilient. Digital may also be fairly defensive in that the purchases are quite small relative to incomes and a lot of players have sunk costs in the games. Still, a recession might crimp "whale" spend in digital and the marginal consumer.
Some new digital title launches is positive for digital, though this will cost lots of money for UA. Maybe the flip-side is that ALL is well capitalised whereas some other publishes might be more constrained in a downturn. Perhaps ALL will get a little more bang for its buck in UA? I suspect youtuber ad spots will be cheaper next year!
ALL's balance sheet also has room for M&A and it is comforting to know valuations have come down materially so that any future purchases will hopefully be more accretive and less risky, I think in hindsight Playtech was not strongly in those categories. Next year is shaping up to be a capital constrained environment which is good for an acquisitive company like ALL.
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