Playtech Case

Submitted By farahnasril
Words: 2107
Pages: 9

Playtech is an online gaming software supplier founded in 1999 in Austria by an Israeli billionaire, Teddy Sagi (Blitz, 2014). In the beginning it started in the Casino industries, but quickly after 2001 it increased its portfolio by adding more products including Bingo network, iPoker network, Videobet and Mobile Casino. In 2006, Playtech officially became a public company as its shares were listed on the London AIM. The same year it expanded, by opening offices internationally and the following years it went into new markets internationally and added Sport betting offerings to its portfolio. In 2010 Playtech took part in multiple acquisitions and integrations. This started the path for Playtech to become a leading provider for multi-channel gaming solutions. Playtech has since continued to do acquisitions. This got them further into the poker-market in 2013, where they bought PokerStrategy (Playtech Plc, 2013; p.24). The continuously and successfully growth of Playtech, led it to be listed on the London’s Main Market in 2012 and today they are the world’s leading supplier of online gaming software. Moreover, Playtech has strong and unique position as it has the ability to compromise an integrated software and or turnkey solution. In 2013, Playtech signed landmark agreements with Ladbrokes PLC to supply a full range of software products, and to enhance its digital business until 2017. In addition, the company is very unique that it is a single player account across all distribution channels and product verticals including Casino, Services, Bingo, Sports Betting, Poker and Videobet. Playtech also has solid financial enactment as it always profitable from year to year.

1. Aim and Strategies

Playtech had performed well in the business as it is profitable consistently from year to year. There is an extensive increment of 46% of total revenue of the company, which is from €142.3 million in year 2010 to €207.5 million in the year of 2011 (Playtech Plc, 2011, . It then continues with the rapid growth of the revenue from €317.5 million to €367.2 million for the year of 2012 and 2013. The achievement is driven by aggressive revenue contribution of all its products and services. Playtech offers variety of products and Services which are Casino, Services, Bingo, Sports Betting, Poker, and Videobet through multiple distribution channels (p.14).
Casino is Playtech's lead product that conveyed an extraordinary execution in 2013, with revenue of €189,216 million. The casino’s revenue for 2012 is €151,745 million, which shows expanding of 25%. In year 2010, Casino contributed €96,710 million and €114,385 for 2011 with the 18% growth. Playtech is offering Turnkey Services to its licensees which includes customer support, financial services, fraud prevention, hosting services, payment advisory, poker and bingo management, live dealer services and marketing services. In 2010, Playtech gain €1,079 and €43,012 for year 2011. The revenue for service line in 2013 is growing 5% as compared to previous year, 2012. It’s been increasing from €106,326 million to €111,116 million, helped by the acquisition of Pokerstrategy in 2012 whose execution has been in accordance with management desires and also with PT Turnkey Services Ltd. Thirdly, Bingo contributed €10,853 in 2010 and increased by 39% with €15,064 in 2011. Bingo continues to perform well in the industry, by reviewing on the increasing revenue by 3% to €18,464 million in 2013, with €17,954 million in 2012. Sports betting is one of the largest gambling markets and frequently acts as the gateway for players to access other gaming experiences. Playtech’s presence as a sport betting systems provider is in its infancy, having launched its first licensee in late 2012. Its revenue was €10,626 million in year 2012 and upsurge by 61% to €17,100 million in year 2013. Poker revenue decreased by 18% to €14,680 million in year 2013 with 2012 revenue of €17,840 million and decreased by 20%