...+ Playtech Plc recently acquired Italian gaming operator Snaitech. The company is planning to partly refinance its existing debt with 530 million of senior secured notes and cash raised through several asset disposals. + We believe Playtech benefits from its position as the leading provider of gaming software, which it could leverage within Snaitech, a largely retail-based gaming operator. However, the company is facing significant regulatory headwinds in Italy and a tougher competitive environment in the unregulated Chinese market, which we forecast will reduce company-adjusted EBITDA by about 12% in 2018 pro forma the integration of Snaitech. + Following the acquisition of Snaitech and recent asset sales, we expect Playtech to increase its adjusted leverage to around 3.0x on a pro forma basis in 2018 from about 1.4x in 2017. Nevertheless, Playtech benefits from being significantly cash generative with reported free operating cash flows of about 50% of EBITDA expected in 2018 excluding...
