Ladbrokes extends partnership with Playtech

11th Mar 2013 07:01

Betting group Ladbrokes has unveiled plans to extend its relationship with Playtech, the online gaming software company, as part of the former's 're-invigoration' of its Digital business. Ladbrokes will create a new e-commerce and digital marketing services operation, to be integrated with the company's existing Digital teams in London and Gibraltar, to enable it to make full use of Digital-focused advisory services provided by Playtech.Playtech will also give Ladbrokes access to its full product suite and technology, which will see the launch of a new 'Vegas' tab on Ladbrokes.com. In addition to the royalties to be generated under the terms of the software agreement, Playtech will be entitled to a success fee for the advisory services it provides, based on the improved performance of the Ladbrokes digital business over and above that achieved in the financial year ended December 31st 2012. Three quarters of the success fee is payable in cash, with the balance payable in Ladbrokes shares.Chief Executive Officer (CEO) of Ladbrokes, Richard 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 next phase of this reinvigoration will see us work closely with Playtech to increase customer lifetime values through enhanced CRM [customer relationship management], an area in which Playtech has a proven track record. The formation of a new, Ladbrokes owned, e-commerce and digital marketing services function, in addition to an expansion of our existing product relationship is a material development. "This relationship will accelerate our progress in a sustainable way over the next five years and beyond." Playtech's CEO, Mor Weizer, added: "This is an exciting opportunity to play a key role in delivering material growth to Ladbrokes Digital business in the coming years. "The combination of Ladbrokes' brand strength, its newly invested core technology and Playtech's proven track record in growing digital revenues through advanced e-commerce and digital marketing has significant potential. "The structure of the agreement reflects our confidence in accelerating Ladbrokes' Digital revenue growth."Ladbrokes shares rose 4.31% to 234.90p, while Playtech's share price climbed 3.81% to 572.50p, by 08:30 Monday.NR