Great Times Ahead for Playtech

0 Comments   Email   Print

Playtech is one of the leading online gaming software providers, which is listed on the AIM exchange. Along with excellent Q2 results for the three months ended June 30, Playtech has updated its players with developments of the past few months. With the exception of poker, Playtech recorded revenue increases in all verticals. Total revenues rose to €39.6 million, while casino revenues rose to €27.3 million. Following the quarterly results, James Hollins of Evolution Securities reiterated his firm's 'buy' stance on the company, stating, "Playtech remains the market leading, go-to online gambling software provider in the industry."

Online casino players would be more interested in the business developments than the financial figures. In Q2 the Playtech joint venture SciPlay was selected by the California Online Poker Association for its proposed intrastate online poker platform. Playtech entered the Spanish online gambling market in partnership with Casino Gran Madrid in May. In Q2 Playtech also completed the deal with PT Turnkey Services, the Euro Partners holding company which offers online casino brands like Casino Tropez. Playtech Chief Executive Mor Weizer said that the latest developments "reflect the success of our ongoing investment in the business and many months of intense preparatory work".

Looking ahead Playtech announced the buy out of mobile specialist Mobenga and a 10 year licensing deal with Gala Coral. The Gala Coral deal has already become the conversation piece in industry circles. It is one of Playtech's largest ever contracts, which will run for a decade and is expected to fetch Playtech €5 million a year. The deal entails that Playtech will supply the Gala Coral group its full range of online gambling products. Playtech will also supply its IMS platform that will support Gala Coral's entire product range. Gala Coral will also shift its online bingo operations to the Virtue Fusion bingo network. The transfer is expected to commence in the first half of next year and is expected to be cash generative by 2012.

Gala Coral's current suppliers include Geneity, Ash Gaming, Chartwell, Cryptologic, Evolution, IGT, Ongame, Jadestone, Game Account, Mfuse, Inspired Gaming and Betradar. According to Weizer, only Geneity offering sports betting will remain as a supplier to Gala Coral with the others gradually leaving between now and next year.

William Hill Online, Playtech's online gaming joint venture partner, was aware of the deal and has not raised any objection to it. Earlier William Hill Online had legally scuttled Playtech's attempt to strike a deal with Ladbrokes. The difference is that the proposed Ladbrokes deal was a joint venture while the Gala Coral deal is a supply agreement. Indications are that William Hill Online would not object to Playtech striking a supplier deal with Ladbrokes.

News Item Tools

 Email     Print     Digg     Del.icio.us    StumbleUpon

Comments

 Add Comment

Add Comment

More News