Ladbrokes joins with Playtech to boost online
Monday 11 March 2013
As punters grab their wallets for the Cheltenham Festival, Ladbrokes today struck a deal with software and services group Playtech to boost its online gambling business.
Richard Glynn, who joined Ladbrokes three years ago with the brief to bring its online business up to speed against rivals like William Hill, once toyed with taking over Playtech.
Now he has struck a deal which will see 40 of Playtech’s Israeli marketing staff transfer to Ladbroke Digital to use their skills to encourage its online gamblers to spend more.
At the same time Playtech will also supply a full range of casino-type games under the “Vegas” tag and the back-office support services to Ladbrokes.
Playtech will earn normal royalties on its games but will also be rewarded handsomely if it manages to grow Ladbrokes’ profits from online gambling over the next five years. Based on various targets Playtech will receive 27.5% of any uplift in the profits and value of Ladbroke Digital.
Glynn said: “Ladbrokes has made significant progress over the past two years by investing in our core technology, revitalising our brand and making our customer offer more competitive. The formation of a new, Ladbrokes-owned, ecommerce and digital marketing services function, in addition to an expansion of our existing product relationship is a material development.”
This month Playtech sold its 29% stake in William Hill Online back to the parent company for £424 million.
Analysts said today’s deal looked good news for both companies.
James Hollins at Investec said: “A strong digital marketing/customer relationship management function was, in our view, the key factor missing from the Ladbrokes online channel and we welcome the deal.”
Ladbrokes’ shares jumped 7%, or 15.5p, to 240.75p while Playtech was up 19.25p to 570.75p.
- 1 Game of Thrones season 6: Jon Snow theorists believe Ned Stark's son may have a twin sister
- 2 Artist takes LSD, draws herself over different stages of the 9-hour trip to show its effects
- 4 iPhone 6s camera: features to include 4K video camera and flash for selfies
- 5 A pint of water every day is the key to losing weight, scientists say
Miley Cyrus address Robin Thicke VMA controversy: ‘He wanted me as naked as possible, but I got the heat because I’m a woman’
Most expensive city to live in for expatriates: Luanda, Angola takes number one spot with Hong Kong and Zurich in top three
If Surrey were Syria: Social experiment shows what it's like to live under siege
Irish tourist filmed fighting with shopkeepers in Turkey says they 'messed with the wrong man'
House of Lords: Outcry as donors, fixers and MPs caught up in expenses scandal get peerages
Dresden riots: Protesters in Germany attack refugee buses shouting 'foreigners out'
France train shooting: US soldiers speak of the moment they stopped gunman and 'beat him until he was unconscious'
Labour leadership: Jeremy Corbyn accused of 'deluding' young supporters with 'claptrap'
'Women only' train carriages: Jeremy Corbyn unveils radical move to tackle public harassment
Black holes are a passage to another universe, says Stephen Hawking
Iain Duncan Smith 'should resign over disability benefit death figures', says Jeremy Corbyn
iJobs Money & Business
£25000 - £30000 per annum: Recruitment Genius: From modest beginnings the comp...
£35000 - £40000 per annum: Recruitment Genius: From modest beginnings the comp...
£15000 - £65000 per annum: Recruitment Genius: This is an exciting opportunity...
£18000 - £20000 per annum: Recruitment Genius: This is a fantastic opportunity...