Playtech seals South African JV with Peermont

RNS Number : 0455W

Playtech Limited

24 January 2012

 



Playtech Limited

('Playtech' or the 'Company')

Playtech seals South African Joint Venture with Peermont Group

Playtech, (AIM:PTEC) the international designer, developer and licensor of software and services for the online, mobile and land-based gaming industry, today announces that it has signed a Joint Venture agreement with Peermont Group ('Peermont') the leading South African gaming and hospitality business, which will enable Peermont to establish itself as a leading online gaming operator in the South African market.

Summary

§ Long term joint venture with Peermont, a leading South African gaming and hospitality business

§ 50:50 Joint Venture formed in advance of expected revisions to South African online gaming regulations

§ Partnership is expected to initially offer sports betting and later broad-based gaming after the introduction of new regulations

§ Separate software license agreement to provide online gaming technology and player management systems to the Joint Venture

§ Initiative in line with stated strategy of expanding joint venture activities

Peermont

Peermont is one of South Africa's largest leisure and gaming businesses and holds seven casino licenses in South Africa and three in neighbouring Botswana. It operates 14 properties, including its flagship Emperors Palace Resort in Johannesburg, seven other casino resorts and two casinos. In 2010 revenues from its gaming operations totalled SAR 2.7 billion (approx. €260 million).

Joint venture

Playtech and Peermont will each own 50% of the Joint Venture. Under the terms of the agreement the Company will deploy its PTTS turnkey solution, including its online marketing and player-retention capabilities. Playtech and Peermont will provide equal amounts of working capital to the Joint Venture, principally for player marketing expenditure. These capital requirements are not expected to be material ahead of casino and poker being regulated in South Africa.

South Africa currently permits online sports betting and it is intended that the Joint Venture will hold a sports betting licence and commence operations in 2012. This will enable the Joint Venture to position itself as a well-recognised online brand in advance of regulations permitting online gaming, ahead of which customers will be able to play online poker and casino games in a 'play for fun' environment.

Through a separate agreement with the Joint Venture, Playtech will license its market leading software and platform, providing all permitted gaming products, together with the player management system and technology to deliver a market-leading gaming experience across online and mobile channels. Playtech's market leading mobile gaming capabilities will be particularly important in the South African market where internet penetration is limited, but mobile device usage is substantial.

Playtech's Chief Executive, Mor Weizer said: "I am delighted to be able to announce another joint venture in a regulating market for Playtech. Peermont is one of the leading players in the South African gaming market and I am confident that we will establish an exciting new online gaming business together, especially once a broader range of gaming products are permitted."

"We are working to establish our joint venture model in a range of international markets. I believe these will prove strongly accretive for shareholders as we align our interests with those of our customers and work to build several new business opportunities."

"Our strategy is to build long term relationships with leading gaming groups in their local markets, combining Playtech's technology and marketing expertise with our partner's local market presence and knowledge."

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For further information contact

Playtech Ltd Mor Weizer, Chief Executive David Mathewson, Chief Financial Officer Ross Hawley, Head of Investor Relations c/o Pelham Bell Pottinger	[phone]
Collins Stewart Piers Coombs / Bruce Garrow	[phone]
Pelham Bell Pottinger David Rydell / Olly Scott / Guy Scarborough	[phone]

About Playtech

Playtech develops unified software platforms and content for the online and land-based gaming industry, together with providing a range of ancillary services such as marketing, hosting and CRM services.

Leading gaming applications include casino, poker, bingo, sports betting, live gaming, casual and fixed odds games.

Playtech provides licensees with the tools to maximise cross-selling opportunities, player loyalty and yield, all through the powerful management interface - the IMS. The Group's capabilities enable the delivery of an integrated software or turnkey solution, with players accessing online, broadcast, mobile and server-based gaming terminals through a single account.

New licensees include existing online operators upgrading or diversifying their offering, land-based casino groups, government sponsored entities such as lotteries, and new entrants making their online gaming debut, particularly in newly-regulated markets.

Founded in 1999, Playtech has some 1,000 employees located in development centres in five countries, the majority of whom are engaged in research and development of current and future gaming technologies, together with 900 employees providing ancillary services. 

www.playtech.com

About Peermont

PeermontHotels, Casinos and Resorts is one of southern Africa's leading gaming and hospitality companies, with a market presence in South Africa and Botswana, and an excellent track record in the design, development, management, ownership and operation of multi-faceted integrated resorts. This includes hotels, casinos, convention centres, retail outlets, restaurants, bars and other sport and entertainment facilities, with further ambitions for growth in Sportsbetting and within other sectors in the gaming and hospitality industries.  In 2010 Peermont produced annual revenues of nearly R2.7 billion, at an industry-leading EBITDA margin of 37%.  The Group owns 16 hotels and 10 casinos, located on 14 properties, with its flagship resort being the renowned Emperors Palace which is located adjacent to OR Tambo International Airport in Johannesburg.

www.peermont.com

 

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