Ann: FY2022 Results Media Release, page-109

Reply to @CbrMaroon

I think the big share price drop is mainly due to the failure of the Playtech takeover.

This might seem contradictory, but I stress at the outset that I agree with the poster who wrote that it was actually a blessing in disguise. Playtech has a bad reputation for business conduct that is illegal or unacceptable in many of the places ALL operates in, particularly USA. Jettisoning those parts of the business, as ALL said it would do, would have taken a big chunk out of of the revenue had the takeover gone ahead. Added to that, it would have damaged ALL's reputation as a responsible corporate player, thus bringing more scrutiny, more restrictions and jeopardising expansion into other jurisdictions. So, all up, I don't think the takeover would have been good for ALL.

Where I think the failure hit ALL hard, and continues to do so, is the perception by the market (i.e the big players and fundies who pretty much dictate the share price) that it has set back ALL's RMG plans. I can't argue with that – it has. Yes, ALL is progressing well with its own RMG platforms and it will one day be a good earner in this essential sector. But I don't think there's any doubt that organic growth will take much more time than an acquisition would have. Fundies – and regular investors – naturally want some assurance of reliable growth within a reasonable timeframe.

That (together with the other factors I've mentioned before) is what I think is the main driver for the share price being hit so hard. I don't think there's any change in ALL's good management, balance sheet, prospects, financial strength, reliable dividends, market share, etc. It's just that now the company needs to put a lot more time and development dollars into RMG.