B2B: well positioned in markets set for growth
Be the partner of choice for newly regulating markets
Growth in the gambling industry is primarily driven by regulation – growth comes from markets that are early in the journey of regulating, which then moderates as markets progressively mature. We aim to be the partner of choice for operators in newly regulating markets, with a particular focus on the Americas and Europe.
The US represents a huge revenue opportunity for Playtech across iGaming, online sports and platform.
The LatAm region has strong structural drivers. Playtech is ideally positioned to deliver strong growth via its structured agreements in multiple countries, including Brazil and Colombia.
Finally, there continues to be strong potential in European markets that are either regulating or underpenetrated online where Playtech can bring the strength of its offerings to bear such as Spain.
Capitalise on Live and SaaS opportunities
Live represents an enormous opportunity, in which Playtech has invested heavily. We have multiple studios currently operational with several more under under construction. We have significantly increased the number of tables over the past few years and invested in both the latest cutting-edge technology and branded gaming rights such as Jumanji™. With significant operating leverage in the business, growth in Live is margin accretive.
The SaaS business model allows Playtech to serve those operators looking for Playtech’s content without the platform, thus increasing the Company’s total addressable market. With investments already made in building out infrastructure, such as data centres, SaaS is a high-margin segment. Although SaaS revenues have been growing strongly, revenue from each operator represents a small proportion of their wallet. Thus, we see ample scope to increase wallet share amongst these existing customers.
Realign resources to reflect B2B growth areas
With exciting areas of growth in regulated markets and several technology trends maturing at the same time, there is a need to continue to invest in B2B division to ensure Playtech maintains and grows its market share lead. We see opportunities across the B2B business where we can improve efficiencies and eliminate duplication, the savings of which can be used to fund any required investments.
B2C: a digital-led approach to drive growth
Leverage retail presence to grow Snaitech’s online business
Italy is one of the top two gambling markets in Europe, along with the UK. Unlike the UK, the online market in Italy is still underpenetrated – 30% currently versus 59% in the UK. As a result, we see significant scope for the higher margin online business to grow.
Snaitech’s strong retail brand is critical to its success and a competitive advantage compared to online operators, particularly in light of the advertising ban in Italy. With average revenue per online customer acquired via retail sites more than three times higher than those acquired directly through online channels, Snaitech’s cross-selling approach means it is ideally positioned to benefit from this growth opportunity.
Optimise HAPPYBET for online
HAPPYBET now sits under the management of the Snaitech team which has initiated a process to optimise HAPPYBET’s online business. This involves rationalising its retail footprint with significant investment in the online business, mirroring the successful Snaitech strategy.
With Germany having the potential to be a significant opportunity, HAPPYBET is in a strong position, having been awarded a sports betting license in Germany.
Targeted M&A to expand Snaitech
The Snaitech management team transitioned the business to take advantage of the shift to online. With this high-quality management team in place, there is scope to utilise this skill set and experience outside of Italy, within neighbouring European countries. Consolidation of HAPPYBET’s position in Germany and Austria through M&A looks attractive, while acquiring assets in other neighbouring European countries provides further opportunity.