Powerhouse Playtech to 'lock-in' client base following year of acquisitions

Powerhouse Playtech to 'lock-in' client base following year of acquisitions

Thursday, February 23, 2017 Posted by Andy McCarron
Wall to wall supply could end up locking out competitors

Presenting its full-year 2016 financial summary FTSE-listed Playtech Plc states that it will push its ‘locking-in’ strategy for customers in 2017 as the company strengthens its position as marketing leading gambling technology supplier.

Closing its FY 2016 performance, Playtech governance has declared group revenues of €708 million up 12% on corresponding FY 2015 revenues of €630 million. Revenue growth was been boosted by a strengthened online casino channel which contributed €355 million in revenues.

The FTSE technology supplier would declare group net profits of €193 million, despite undertaking M&A costs of circa €240 million for its acquisitions of BGT (sports betting), Quickspin (games developer), ECM (bingo software) and CFH (financial trading).

Playtech stated that the acquisitions carried out in 2016 would help the company optimise its omni-channel services for top tier regulated market clients. The company now points to its strengthened ‘BGT Playtech’ sports betting division which will add a further dynamic to its industry services portfolio.

Further pleasing to investors will be Playtech’s reported €296 million return to corporate shareholders, with the company executing a €150 million 2016 share dividend and a further €50 million buyback scheme.

Following a year of M&A activity, Playtech Plc Chairman Alan Jackson commented on the firm’s performance: “The Gaming division once again delivered very strong growth. Sports saw a good second half performance following the acquisition of BGT with the newly formed Playtech BGT Sports bringing together all aspects of the Playtech’s sports offering creating a fully integrated, best-in-class sports betting technology. 2016 also saw the signing of more than ten new customers with ten new customer go-lives. 9 of out of 10 top customers are now on long-term contracts with Paddy Power Betfair, William Hill, Rank and Betfred all renewing in the past few months.”

Entering 2017, Playtech governance is confident of the company’s future performance having added 10 new tier 1 operators to its client portfolio including OPAP (Greece), Mr Green, MaxBet and PokerStars. Furthermore, the FTSE technology supplier claims to have the strongest igaming commercial pipeline having renewed partnership terms Paddy Power Betfair, William Hill, Rank and Betfred in 2017.

Totally Gaming says: As the outright leading industry technology and software supplier, Playtech has been further pushing for all-encompassing partnerships with its client base. Creating an all vertical (sports, casino, bingo, lottery, poker etc..) lock-in strategy is key to the firm’s growth and will make it harder for its competitors to gain any significant traction.

Should Playtech’s strategy bear success, the company will likely dominate tier-1 operator processes and operations... leaving industry stakeholder to ask whether 'anyone compete against this technology powerhouse'.

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