Playtech Announces New Partnerships

0 Comments   Email   Print

Along with the announcement of its financial results for Q4 and full year of 2011, Playtech also revealed some new partnerships in online gambling markets that are expected to open up in the near future.

The first market that Playtech covered was Germany. Playtech has entered in a 49.99% joint venture with Gauselmann, the land based gaming operator and owner of the Merkur gaming brand. The joint venture will offer sports betting and gaming products and services, depending on what form the German legalization ultimately takes. Both partners will have equal board representation.

South Africa is another market where the government has been considering legalization. There Playtech has entered into a 50:50 partnership with Peermont, a casino and resort operator. Peermont operates 14 properties, including its flagship Emperors Palace Resort in Johannesburg, seven other casino resorts and two casinos. In 2010 revenues from its gaming operations totaled approximately €260 million. This joint venture will initially offer sports betting. Broad-based gaming will be offered on the introduction of new legislation. Playtech will separately supply online gambling software and player management systems to the partnership, which will generate direct revenue streams.

In addition to the joint ventures, Playtech has announced the acquisition of UK based sports book developer Geneity for an initial cash consideration of £11 million. A further £4 million in cash will be payable subject to certain agreed deliverables by Geniety. Geneity was formed in 2006 and its clients include Gala Coral, Betfair and Ladbrokes. Geneity's sports book will replace Playtech's existing product. Playtech will also integrate Geneity products with its recently acquired Mobenga mobile sports book platform.

The Playtech press release also addressed the rumors of the problems with its Scientific Games joint venture. This is being sorted out by restructuring the joint venture to a simple supplier relationship. Playtech said this arrangement will deliver greater flexibility for both parties and more straightforward revenue recognition. Playtech also gave an update on its works in progress. Integration with the recently acquired Ash Gaming will begin. Gala Coral's migration project is expected to be completed by the middle of 2012. Playtech is gearing up to launch its licensees in the Spanish and Danish markets.

On the financial performance front for the 12 months ending December 31, 2011, gross income rose by 41% to €243.6 million. Mor Weizer, chief executive of Playtech, commented, "Growth from our existing business has created a solid platform for 2012. Taken together with today's other announcements, I believe Playtech is well positioned to take advantage of market opportunities wherever as and when they appear." He also referred to the US Department of Justice's pre-Christmas guidance and said the Playtech was preparing for the American market as well.

News Item Tools

 Email     Print     Digg     Del.icio.us    StumbleUpon

Comments

 Add Comment

Add Comment

More News