Re Agreement
Sportech PLC
21 August 2001
21 August 2001
LITTLEWOODS LEISURE TO SPONSOR ITV's INTERACTIVE FOOTBALL COVERAGE
Sportech plc ('Sportech' or 'the Company') has signed an exclusive deal that
will see Littlewoods Leisure ('Littlewoods') become the exclusive sponsor of
ITV's interactive football coverage. Carlton Active has created the
interactive service to support ITV's domestic football programming, for
digital terrestrial viewers.
Littlewoods will offer ITV Digital's 1.2 million households the opportunity to
predict match statistics during the live football games broadcast on digital
terrestrial television. ITV will also promote Littlewoods own gaming products
focused around Littlewoods £2 million a week football pools game, but also
including BetDirect's sports betting and Prizebuster Lotteries. This unique
interactive package will bring an enhanced viewing experience to ITV Digital's
customers. At the same time, Sportech will be able to drive increased revenues
on Littlewoods products and to expand their established customer base of over
1.6 million households.
The opportunity to participate in Littlewoods-sponsored interactive gaming on
ITV's Digital channel, including the new ITV Sport Channel, will be promoted
throughout ITV's domestic football coverage during this season. ITV will be
screening over 2000 hours of live domestic football and football discussion
shows. This will include their new Saturday night Premiership football
programme, hosted by Des Lynam ('The Premiership').
The agreement further progresses Sportech's strategy of making all their
gaming products truly multi-channel, with particular concentration on
providing home based gaming opportunities to their ever-expanding customer
base. Digital television is a key channel to the advancement of the Company's
strategy and this latest interactive offering will complement its existing
distribution channels, which range from the internet to Littlewoods' famous
door-to-door collector network.
As well as the enhanced brand awareness that the deal will bring to
Littlewoods' games, the interactive nature of the digital television is
enabling Sportech to develop new games and betting products, further
increasing the range and diversity of products they offer. Sportech's and
ITV's similar customer profile and strong football focus highlights the
synergies between the two companies' brands and the benefits that they will
both enjoy from this relationship.
Colin McGill, Managing Director, Sportech plc, said:
'We believe that the exposure that this sponsorship agreement will bring to
our brand will drive significant business to our continually expanding
portfolio of betting and gaming products. There is a tremendous brand fit
between Littlewoods, which already has a 70 year association with Saturday
football fixtures, and ITV, which is just embarking on its own exciting
association with Premiership football viewing.
'This partnership has the potential to bring an attractive and innovative
approach to digital television, which will be well beyond what consumers have
previously been offered. We hope this agreement will be the start of a long
and exciting relationship between our two companies.'
Jolie Powell, ITV's Head of Business Development said:
'Interactive TV services have proven to be an enormous asset to our
programming. Last season, 80% of ITV Digital sports fans used our enhanced
UEFA Champions League service. ITV viewers love using the service and ITV's
football offering simply would not be complete unless we provided our audience
with this extremely effective means of enhancing their viewing. We are
delighted to have signed this agreement with Littlewoods who, like ourselves,
are committed to delivering high quality entertainment into the home. We
believe the relationship is a strong indication of our desire to increase the
ITV viewing experience with a range of different services.'
Carlton Active's Chairman, Martin Bowley, comments:
'This deal is a major milestone for the interactive TV industry. It proves
that advertisers understand and value the significant benefits that
interactivity can bring to their brand. Last season ITV viewers accessed the
enhanced UEFA service on average 15 minutes during each match. For Littlewoods
to have that reach, over multiple programmes, across the entire season is
monumental. This deal also sets the foundation for a long-term, fulfilling
relationship with Littlewoods.'
Commenting on the deal, David Henderson, Gaming Industry Consultant at KPMG
Consulting, independent advisors to the deal, said: 'Gaming and gambling has
been one of the few interactive television services to have generated
significant revenues to date. There has been an increased emphasis for gaming
operators to secure access to strong content, and the partnership between ITV
and Sportech is significant in this regard. The interactive television gaming
market in the UK is forecast to be worth around £2 billion by 2005.'
Enquiries
Sportech plc 0151 288 3006
Colin McGill, Managing Director / Peter Cuffe, Director of e-Gaming
Bell Pottinger Financial 020 7353 9203
Rebecca Fox / Oliver Jones
ITV 020 7843 8092
Nicola Howson
Notes to Editors:
Sportech PLC:
* Sportech plc is the holding company for Littlewoods Leisure, the UK
gaming company, acquired in a reverse take-over completed in September
2000. Sportech is developing the Littlewoods gaming and leisure business,
utilising new channels of distribution to bring more games to more
players, capitalising on the strength of the Littlewoods brand, namely its
association with the values of trust and integrity.
* Littlewoods Leisure is one of UK's oldest established gaming companies,
providing football pools, sports betting and lotteries. Founded in 1923 as
Littlewoods Pools, the company has a regular playing customer base
covering 1.6 million households.
* Littlewoods Leisure have had a long establish relationship with football
in the UK, not only through their organisation of the largest and longest
running football pools competition but also through being the first
sponsorship of the FA Cup between 1994 and 1999. Through its links to
football, including ongoing contributions to the Football Foundation,
Littlewoods Pools alone has given back over £400 million to the UK's
national game.
* Littlewoods Leisure's multi-product offering across Pools, online and
telephone sports betting and soft gaming (lotteries, scratchcards) is
complemented by its multi-channel distribution network including mail,
telephone, the Internet, 15,000 retail stores and 13,000 door-to-door
collectors.
* Bet Direct, the telephone and on line betting arm of Littlewoods
Leisure, has been one of the fastest growing sports betting services in
the UK and now has over 200,000 registered account holders. Bet Direct
offers a full range of fixed odds betting and prides itself on delivering
innovative betting incentives for its customers through daily 'Best Bets'.
Bet calls are free and there is a free £5 bet for all new customers.
* PrizeBuster is the UK first internet and interactive TV lottery, it is
available through Littlewoods' website bet247 and through Telewest's
digital network. The game involves customer matching either 3 or 4 numbers
between 1 and 49, based on the National Lottery Draw, the average prize
money for 3 numbers is £800 rising to £7,000 for 4 numbers.
* For more information on Sportech, please visit our website at
www.sportech-plc.co.uk
Carlton Active:
* Carlton Active is a one-stop iTV production house, which creates and
implements interactive programmes and advertising across all three digital
TV platforms - digital terrestrial, digital satellite and digital cable.
* Since launching in 1999, Carlton Active has become a pioneer of
interactive TV in the UK, building up a wealth of experience. In addition
to creating the first interactive commercial to air on ITV, it has already
created iTV ads for major advertisers such as the AA, Proctor & Gamble,
Roche and Unilever.
* Carlton Active's interactive ITV Sport service equips ITV's viewers with
enough facts and figures to satisfy even the most ardent fan, all accessed
by using their digital television remote control. Live match results, team
sheets, goal information, football news, league tables and fixtures are
just some of the information available while they continue to watch
television.
* Carlton Active has also created a number of interactive TV services to
support ITV's programmes, including the UEFA Champions League, The BRIT
Awards, The General Election and Survivor.