Playtech Extends Paddy Power Deal
Gambling software provider Playtech has extended its exclusive partnership with leading sportsbook Paddy Power. The freshly announced multi-year agreement builds on the longstanding partnership between the two firms. The news follows Playtech’s pre-closing statement, predicting EBITDA to rise to €400 million.
Playtech will continue to work with Paddy Power to meet rising digital demand at its retail outlets. ©Darya Sannikova/Pexels
Decade-Long Partnership
Playtech has announced a new deal to extend its relationship with Paddy Power. The leading software provider will continue to offer its sports betting solutions to the popular British bookmaker as part of the exclusive partnership. The pair have been working together to provide consumers with innovative betting products for over ten years.
The newly extended deal will see Playtech continue to act as the bookmaker’s exclusive provider of Self Service Betting Terminals in Paddy Power’s retail outlets across the UK and Ireland. Playtech will also continue to provide the bookmaker with its market-leading sports betting software.
In a statement publicizing the extended deal, Playtech explained that it is keen to fulfill the rising demand for digital betting experiences at high street betting shops. Speaking on behalf of the software provider, Playtech COO Shimon Akad praised the bookmaker’s success. Describing Paddy Power as a leading force in its niche, Akad stated:
“We look forward to building on our successful partnership with them. Our software performance has made this ongoing collaboration possible, and we are set on progressing plans to provide a customer-centric roadmap for the years ahead as we continue to develop new technologies aimed at digitising the retail space.”
The Irish bookmaker was founded in 1988, through the merger of three betting providers. Starting out with forty betting premises, Paddy Power has implemented an aggressive expansion strategy by opening new shops in prominent locations. The brand merged with Betfair in 2016 to create Flutter Entertainment, and now boasts 500 betting shops across the UK and Ireland.
Alongside its betting shops, Paddy Power operates a popular betting app and hosts online casino products on its website. The brand has become a household name thanks to its unconventional betting markets, which include politics and popular culture. Last week, it was hailed a ‘Superbrand’ in recognition of its effective and mischievous marketing campaigns.
Growing Demand
Playtech was formed in 1999 by Israeli entrepreneur Teddy Sagi. Since launching its first casino product in 2001, the software provider has expanded to become the world’s leading developer, designer and licensor of online gambling software to the industry. A huge array of blue-chip firms, including William Hill, Ladbrokes, Bet365 and Sisal benefit from its services.
Landmark partnerships with Marvel Comics and Warner Bros have enabled the provider to develop slots based on famous movies and characters. A number of its games are based on DC Comic feature films, including ‘Suicide Squad’, ‘Justice League’ and ‘Batman v Superman: Dawn of Justice’.
Playtech’s leading market position as a provider of retail sports betting terminals has been reinforced by the recent releases of new features and markets. These include an improved Betbuilder, as well as Player Props. The firm is keen to meet the needs of betting shops as the popularity of sports betting terminals continue to rise following last year’s FIFA World Cup.
Playtech is confident in its future as it leverages Flutter Entertainment’s market leading pricing capabilities to deliver new markets and betting prospects to Paddy Power customers using the Playtech terminals. In a press release, the software provider reiterated its commitment to delivering an incredible omni channel and betting experiences to an ever-increasing base of players.
Paddy Power COO David Newton was pleased to reveal the extended deal with Playtech, with which it has partnered for more than a decade. With both firms going from strength to strength in a rapidly evolving industry, it is clear that the relationship is likely to flourish for many more years. Newton said:
“We are pleased to continue our strategically important relationship with industry leader Playtech. Playtech terminals are integral to our retail offer and a crucial part of the future strategy of our shops. We look forward to expanding this even further in the coming years.”
Trading Update
The announcement of the extended partnership comes a week after Playtech issued its post-close trading update. The company predicted full year EBITDA of at least €400 million. At the end of January, Playtech notified its investors of strong growth and KPIs since its 2022 interim results were published last September.
Playtech revealed that its EBITDA prediction is 26% higher compared to its full year results for 2021. It explained that this growth was driven by both the B2B and Snaitech businesses. The group’s interim results detailed a 73% revenue increase on the previous year, to €792.3 million. The Snaitech Italia unit was responsible for generating €446 million.
The company is due to release its FY results for 2022 on March 23rd. The official trading update will be given at an in-person results presentation at 9am at the London Stock Exchange. The presentation will also be made available via conference call and audio webcast.
On the same day and at the same location, Playtech will also take the opportunity to host an event for investors and analysts. The event will cover the most exciting growth areas within the B2B division. Presentations will be delivered by the management team focusing on the Americas and Live segments.
Analysts are continuing to monitor the group, following a number of failed M&A approaches in 2022. Both Aristocrat Leisure and Hong Kong private equity fund TTB Partners walked away from takeover bids, sending share prices in the software provider downwards.
Playtech had attracted acquisition bids as companies seek to capitalize on the boom in online gambling. It remains to be seen whether 2023 will bring a successful takeover at Playtech. Closing its announcements for 2022, the company named its new Group Chief Financial Officer as Chris McGinnis. He will be taking the reins from Andrew Smith, who held the role for seven years.
