GTECH sets new path after 23% profit fall

GTECH has unveiled plans to expand its international presence and develop a new online sportsbetting product after recording a 23% slide in full-year profits.

Net profits for 2013 fell to €205.2m, a dip which can be partly attributed to a 7% reduction in online wagering in GTECH’s key Italian business to €1.9bn, although a strong finish to the year saw Q4 wagering up 5% year-on-year to €525m.

GTECH chief executive Marco Sala said 57% of total revenues were derived from Italy but stated the market to be one of three, including Spain and Greece, to be close to saturation.

As such, GTECH will now focus on emerging markets in Asia having forecast an 8% compound annual growth rate in the continent over the next two years, while North America will also be a key focus moving forward.

The company is also weighing up a bid to supply Turkish national lottery Milli Piyango, with a ten-year deal on offer. Sala said GTECH will come to a final decision on whether to apply for the contract next month.

In addition, the firm plans to accelerate its mobile penetration and wants 40% of its interactive revenue to be derived from mobile devices by 2016, and Sala made special mention of GTECH’s approach for London-based mobile developer Probability.

The £18m bid is not expected to complete until next month and remains subject to approvals in Gibraltar, Italy and Great Britain.

A new online sportsbook product is also set to be developed after GTECH won the online sports betting contract from the now-privatised Greek monopoly OPAP, having beaten the likes of Playtech and Openbet for the tender.

The new sportsbook will be expected to share both content and player data across GTECH’s other products, including retail, creating a system similar to Playtech’s IMS backend.

GTECH also outlined plans to target geographical expansion with the new sports betting platform, highlighting both Australia and Singapore as potential new markets.