PlayTech Q1 Reports Show Bingo More Popular than Poker Online
For years now, online poker has been the second largest grossing internet gambling industry, behind the immense online casino industry. Online bingo has always been a big money maker for operating networks as well, but as of this year, PlayTech is actually reporting first quarter figures wherein online bingo has become a more profitable business than its massive iPoker Network.
Compared to the first quarter results from 2012, the PlayTech bingo network’s revenue has risen 9%, now valued at € 4.8 million. The iPoker Network, on the other hand, despite being the third largest poker network in the online card gaming industry, fell 18% to €4.4 million. However, the drop in internet poker revenue won’t be hurting the leading internet gaming software development company any.
Overall, PlayTech’s profits are up 16%, generating a total revenue of €87.5 million across all of its gambling venues and other service departments. The brand’s casino software is the most lucrative of all, bringing in €44.1 million, followed by its services business, which produced another €26.3 million. The online gaming giant attributed the significant increase in returns to its new-found business relationships, particularly that of Ladbrokes.
PlayTech recently entered into a contract with Ladbrokes that will see the long-time multi-faceted online gambling company transition from the Microgaming Network over to PlayTech’s manifold gaming suite. Ladbrokes will join the iPoker Network, integrate the PlayTech casino platform and offer online bingo services via PlayTech’s sophisticated technologies. Ladbrokes is also taking advantage of PlayTech’s back-end and marketing services.
“Our landmark transaction with Ladbrokes, under which Playtech will provide its full product suite and marketing advisory services, clearly demonstrates Playtech’s unique position,” said Mor Weitzer, Chief Executive Officer for PlayTech, boasting it as one of the company’s foremost corporate achievements.
The i-gaming conglomerate also wrangled in a large profit when William Hill chose to buy back its stake in William Hill Online. However, the company will continue to profit from this relationship as William Hill continues to employ back-end services from PlayTech. William Hill is most pleased with the results as well, seeing an 8% increase in revenue of its own.
The rise of online bingo revenue, and coinciding drop in online poker, may be easy to track back to its source. PlayTech launched its HTML5 mobile bingo application for Android in August of 2012, with the promise of an impending launch for Apple iOS devices (iPod, iPhone and iPad) in the near future; a promise that became a reality in February of this year. The mobile gambling industry is undeniably growing at a rapid pace, thus it should come as no surprise that mobile bingo gaming would follow suit.
As for the decrease in online poker revenue, only one clear factor draws the pointed finger. In November of 2012, one of the company’s largest rivals of old made a headline return to the world wide web. I’m talking about the re-launch of Full Tilt Poker, under the new ownership of Rational Group Ltd; the same company that operates PokerStars. Up until then, iPoker was in a heated, back-and-forth battle with PartyPoker for the #2 spot. Ostensibly, a portion of that market flowed into Full Tilt throughout the first quarter of 2013.
Not much will change for online bingo fans, though. Members of PlayTech powered bingo sites will continue to have access to the largest independent bingo network, boasting life-altering prize amounts and a massive variety of more than 65 mini games. The iPoker Network won’t see any visible changes either. It still boasts the 3rd largest network in the online poker industry, averaging 2,700 active, real money poker players at any given time in a 7-day period.
Wonder how PlayTech’s bingo strategy adapts against Full Tilt’s poker comeback? 🤔