GVC Boss Optimistic as New Playtech Deal Improves Flexibility

GVC and Playtech have agreed a multiyear partnership that will see UK gaming brands Ladbrokes Coral, Partypoker and Bwin receive a raft of software upgrades.

GVC Kenneth Alexander

GVC CEO Kenneth Alexander believes an enhanced partnership with Playtech will benefit both companies. (Image: MyBetInfo)

Extending an existing six-year-old deal, the two companies will now enhance their relationship through a series of new initiatives.

Set to run until 2025, the new arrangement will see Playtech provide “key” products and services across the GVC network. Significantly, that means Playtech will gain a greater footing in new markets.

Playtech Profiting from GVC Expansion

With retail revenue in the UK falling due to recent regulatory changes, GVC has found solace in its online products. In third quarter of 2018, the gaming operator saw online revenue improve by 1.7 percent.

Using this momentum, the company has increased its presence in regulated European markets as well as the US.

For Playtech, this ability to supply products and services to big British brands as well as US-based businesses such as MGM Resorts will be seen as another positive.

Despite starting 2019 with an unexpected tax bill for £25 million, the software provider recently reported a revenue spike of 54 percent in 2018.

Although much of last year’s performance stemmed from the purchase of Italian betting brand Snaitech, company bosses believe earnings can still top £300 million in 2019.

New Deal Creates New Opportunities

By forging a new deal with GVC, Playtech has the ability to reach its targets. With its partner establishing a strong base within the US and riding a wave of positive results in 2018, fortunes could be on the up.

Commenting on the news, GVC CEO Kenneth Alexander said the enhanced relationship would help solidify the quality of existing products and create new opportunities.

“Even more of our customers will now be able to enjoy content from one of the world’s leading suppliers of high-quality gaming product. At the same time, the added flexibility around migration of technology platforms enables us to accelerate the integration of Ladbrokes Coral,” Alexander said on February 27.

As the announcement filtered across the industry, shares in Playtech jumped by 4 percent.

Although some analysts exercised caution when assessing the deal, investors are optimistic that further collaborations will prove profitable for Playtech and GVC.

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