DAVY VIEW

Gamesys’ strong FY 2020 results provide support for several pillars of our investment thesis. These include strong earnings growth and momentum, continued deleveraging and enhanced balance sheet optionality, and the scope to expand into new markets (including the potential to make further progress in the US in FY 2021). FY 2020 results are c.2% ahead of (already upgraded) expectations, meaning we nudge estimates higher for the second time this year (c.1-2% for 2021-22 adjusted EBITDA). It leaves the stock on an undemanding rating (7.8x FY 2021 EV/EBITDA). We reiterate our ‘Outperform’ recommendation.