The world’s largest online gaming software supplier, Playtech is traded on the London Stock Exchange Main Market. 2014 was a good year for Playtech, with financial results of 140.7 million euros. The company offers cutting-edge value to most of the industry’s leaders. In operation since 1999, the main goal has been to continuously develop the best products and content in the gaming industry. Founded in Tartu Estonia by Israeli billionaire Teddy Sagi, Playtech was developed by professionals and entrepreneurs with casino, multimedia, and software engineering backgrounds. The company’s first casino licensee was welcomed in 2001. Since this time, the company has grown exponentially even with the 40 percent drop in value after the United States government banned online gambling in 2006.
In 2006, Playtech had shares successfully listed on the London AIM. This officially made Playtech a public company. Adding to that, Playtech expanded and opened an office in Bulgaria. With the grown of the company, the following years had the company push towards offering sports betting and getting launched within Italy, Estonia, Serbia, and Spain.
During 2010, there were several acquisitions and integrations that pushed Playtech into the lead as a provider for the gaming industry in terms of providing multi-channel solutions. A few years later in 2012, Playtech was listed on London’s Main Market and took over one of UK’s most popular sports betting provider, Geneity. Another acquisition occurred in 2013. Playtech took control of PokerStragey.
Due to the nature of the products offered, customers can integrate the suite into online, broadcast, mobile and server-based terminals with just one account. Some of Playtech’s leading applications include a full online casino, bingo, sports wagering, live gaming, poker, as well as casual and fixed odds games. Along with the suite, Playtech has a cross-platform capability. This allows for opportunities such as cross-selling, and player loyalty. There are several other products available by Playtech. Everything from retail to lottery solutions, there is bound to be something that fits every business’s needs.
Products aren’t all that Playtech is known for. The company offers many services that help make things easier for other companies. Referred to as Playtech Turnkey Services, Playtech offers eight unique offers to help push companies forward. One of the most important is customer service. Playtech has this available as soon as registration is complete and is available 24/7. Along with customer service, Playtech offers financial services, fraud prevention, payment advisory, and poker and bingo network management. Hosting services, live dealer services, and marketing services are also available by Playtech.
Recently, Playtech has continued the expansion into financial trading by purchasing Plus500. Mor Weizer, the company’s chief executive, stated that the deal took only a week to acquire and is part of Playtech’s strategy to diversify away from gaming. The intention is to use the core competencies of product infrastructure, customer relationship management, and marketing. Weizer added, “As an immediately earnings enhancing acquisition, the combination of the two businesses is compelling, enabling us to apply our market leading products and services to the enlarged financial trading business as we continue to execute our growth strategy for the group.” This occurred just a few months after Playtech purchased 91.1 percent of TradFX – a trading platform that has CFD and binary options.
Once the deal is finalized, Playtech’s business will be 35 to 40 percent financial trading with approximately 150,000 active traders. Mor Weizer added, “and is growing faster than gaming.” With these numbers, Mr. Weizer is confident that some of the traders would be enticed to start gambling, especially with binary options drawing interest. He went on to say, “the sector is still very fragmented so further consolidation is likely.” The company has already made it known that there is more money to spend in acquisitions in the near future.
Playtech states that the average daily revenue in the gaming division for the first 55 days of the third quarter is up 15% when compared to the previous year. This shows the tremendous growth for the company; however it is slightly down from the numbers seen for the second quarter of this year.
“We have completed a series of strategic acquisitions to create and enhance our new financials division, a high-growth and regulated industry, and our continued operational delivery across all business segments has translated into a strong financial performance across all key metrics, with revenues up by a third in the half year,” said by Playtech chairman Alan Jackson when asked about the company’s financial outcome. He went on to add these points: “Our Gaming business continues to go from strength to strength with our strategy of focusing on regulated markets driving growth.” “Our pipeline remains strong, with significant opportunities across all geographies, as customers seek to benefit from our market-leading omni-channel offering and our best-of-breed products in each and every product category.” “Taken together, the progress we have made gives me great confidence that the sustained momentum in our business will result in further growth in 2015 and beyond.”
The company is expanding quickly and it is not just in the gambling industry. With the numbers proving that Playtech has experience with financial trading, customers seem to be signing up with the software firm for one side or the other, and sometimes giving both a try. One thing is for certain, Playtech is not slowing down any time soon.