GTECH outlines new strategy after profit fall

Gtechg2Gaming and lottery supplier  GTECH is set to undertake a new corporate strategy, focusing on development of igaming verticals after the company published 23% decline in full year profits.

2013 proved to be a tough year for the gaming supplier, as it witnessed a decrease in Net Profits to €205.23 million (2012 – €265 million). Key factor for the fall in net profit, was partly attributed to a 7% reduction in igaming wagering in GTECH Italian business to €1.9bn. The Italian market currently generates +50% of GTECH revenues.

Group CEO Marco Sala commented that revenue generation in key markets had become harder for the operator, as Italy, Spain and Greece were now close to saturation. Sala outlined that future growth would need to come from new markets, such as Asia, the US and Eastern Europe. GTECH are set to bid for the rights to supply the Turkish state lottery – Milli Piyango, with a ten year multi platform services bid.

The company statement outlined that the technology operator needed to improve its digital offering. GTECH plans to become the leading supplier to state owned igaming operations – referred to as WLA’s.

GTECH is set to produce a new sports betting platform, with strong focus on mobile capabilities. The company statement outlining future strategy, stated that GTECH aimed for 40% of its future interactive revenue to be generated by mobile devices by 2016.  The company acquired mobile gaming platform Probablity PlC in February this year.

As a Technology supplier, GTECH has suffered in the igaming market. Recently the company announced that it would be closing its online poker network – International Poker Network (IPN). GTech have further lost supply contract to key accounts in igaming, as operators have chosen to partner with other technology suppliers – notably Openbet and Playtech.

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