Australian games provider Aristocrat Leisure Limited has announced it priced a new US$ 500m Term Loan B facility that will mature in October 2024. 

At the end of April we reported that Aristocrat had “stood down” 1,000 staff, mainly from its land-based sales, services and manufacturing operations, due to the COVID-19 crisis. The dividend for the 2020 financial year was also suspended.

According to the company, the new loan, which is expected to be settled by 21 May, will help preserve its balance sheet metrics, and will be used for general corporate purposes. 

Aristocrat says invested support the loan, which was priced with a margin of 375 basis points, and will leave the company’s debt at approximately US$2.35 billion. 

Discussing the news Aristocrat CFO, Julie Cameron-Doe, said:

“The TLB market continues to provide Aristocrat with flexibility and competitively priced debt on a covenant light basis, and we are grateful for the ongoing support of this important debt market.”

AYO.NEWS says:

While its positive news that Aristocrat has been able to secure the financing it needs to shore up its balance sheet, there’s no denying that’s an intimidating debt burden! As we speculated previously, we’re sure this crisis will lead to Aristocrat pivoting more towards its online businesses like Big Fish and Plarium. 

‘AYO.NEWS says’ features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited or its affiliates or associates. 

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Scientific Games’ ReelPlay content is launching with Golden Nugget Online Casino in New Jersey. 

Distributed through the Open Gaming System, content will include popular titles like El Dorado Infinity Reels, with Hypernova Megaways planned to be released in the future. 

Commenting on the news SVP casino and platforms for Scientific Games, Dylan Slaney, said:

“We’re excited to bring another round of breakthrough experiences to players in New Jersey.

“This launch builds on our Open Gaming ecosystem, which gives developers and innovators the opportunity to offer their content to more players than ever before.”

While SVP and general manager, Golden Nugget Online Casino, Thomas Winter, added:

“Golden Nugget Casino continues to be a leading sponsor of innovative slots content in the US market.

“The partnership between Golden Nugget, ReelPlay and Scientific Games allows us to provide our growing player base with an exclusive first look at games that are pioneering the online slots industry.”

In common with other jurisdictions around the world, though COVID-19 has obliterated revenue for New Jersey’s land-based casinos, online casinos in the state have seen a surge in revenue through April. 

Staying with Scientific Games, last week we reported the company had been awarded a new three-year contract covering the provision of instant games to a major German lotto operator. 

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Scientific Games has been awarded a new three-year contract covering the provision of instant games to LOTTO Thüringen. 

The central German operator is an existing partner of Scientific Games, but the new contract was won following a “competitive procurement process”, and covers instant games, which are scheduled to launch in 2021. An option to extend the contract by one year has also been included.

Commenting on the news LOTTO Thüringen CEO, Jochen Staschewski, said:

“We look forward to continuing our successful partnership with Scientific Games and the sustainable growth of instant game revenues in Thuringia.

“This is one of the few lottery markets in Germany that continues to grow. Our growth is largely driven by instant products; therefore, we plan to further develop our portfolio of instant games sold at retail as well as offer our players digital instant games to enjoy at home and via mobile.”

While Scientific Games senior VP of instant products, John Schulz, added:

“We have offered LOTTO Thüringen instant game products with value adds that have proven ability to responsibly increase revenue for our lottery customers.”

Scientific Games also recently renewed contracts in the US states of Iowa and Connecticut. 

Last month, Scientific Games issued an update regarding its corporate contingency programme, initiated due to the COVID-19 crisis. 

AYO.NEWS says:

With ever-increasing competition from other forms of instant online entertainment and gratification, it’s vital that lottery providers step-up their game if they want to remain viable, so this deal makes a lot of sense for LOTTO Thüringen.

‘AYO.NEWS says’ features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited or its affiliates or associates. 

All original content featured on this site is © Pentagon Digital Limited, 2020

Flutter Entertainment is set to deploy GTG Network’s (GTG) “Skill Zone” free-to-play (FTP) portfolio across its Paddy Power vertical. 

The operator says GTG’s Skill Zone inventory, which includes its flagship “Hit the Spot” game, along with trivia games and arcade basketball, will expand its sportsbook FTP offering and increase player engagement. 

Skill Zone games will be launched across Paddy Power desktop and mobile (iOS and Android) verticals. 

Commenting on the news co-founder and partner at GTG, Nathan Rothschild, said:

“In what is an unprecedented and difficult time, we’re fortunate to be in a position to have a suite of products to connect with fans whilst there is little sport being played. We have been excited about the response to Skill Zone. Already a unique offering for sportsbooks, the new features we are releasing will truly push the benchmark for industry innovation.”

While Paddy Power Sports Director, Ben Reilly, added:

“With the impacts of COVID19 on the sporting calendar, we’ve been looking for creative ways to keep our customers entertained and engaged with our brand. We’re really pleased with the early results from Skill Zone, providing a mix of sport and trivia games that our customers have really taken to.”

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Digital performance marketing company XLMedia has announced cost cutting measures, including staff cuts.

The company says it is aiming to save USD $5 million by laying off staff and focusing on automation and outsourcing. 

Commenting on the plans XLMedia Chief Executive, Stuart Simms, said:

“I joined XLMedia with the clear intention to orientate the Company towards a balanced portfolio of premium branded sites, in verticals and markets that deliver sustainable revenue growth. To support this transformation, we have been working diligently to augment our leadership team and operating structure, as well as to right-size the resources required for our business to operate most efficiently.

“Our transformation plan continues to gather momentum, and I am pleased to share our progress with all our major stakeholders, alongside welcoming new talent to the business.”

XLMedia has also promoted Chief Transformation Officer Sarah Clark, who joined the company in February, to the position of Chief Operational Officer full-time. Meanwhile Xen Lategan, formerly CTO for New International, has been appointed interim technology consultant. 

Jersey-based XLMedia works with many major gambling operators including betway, betsson, 888 Holdings, William Hill, UNIBET, PaddyPower, Mr Green, and Ladbrokes. 

AYO.NEWS says:

Ever-increasing regulation, brutal competition, and increasing apathy from consumers were making life difficult for affiliate marketing companies even before the COVID-19 crisis. As the economic catastrophe caused by governments’ overreactions to the pandemic start to bite, things are sure to get even harder.

Earlier today we reported that affiliate marketing company Raketech had reported a 77% plunge in total profits for the first quarter of 2020. 

‘AYO.NEWS says’ features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited or its affiliates or associates. 

All original content featured on this site is © Pentagon Digital Limited, 2020

Malta-based online gambling affiliate marketing company Raketech has seen total profits plunge by 77% in the first quarter of 2020. 

Revenue for the period was actually up slightly at €6.5m, a 1% increase on the same period last year, and a 12% increase on the previous quarter. New Depositing Customers (NDCs) were also up, by 12.8% to 32,278.

But, this didn’t stop total profit falling to €1.1m. Operating profit dived 50% year-on-year to €1.4m, and profit before tax tumbled 54% to €1.1m. EBITDA was also down 26% year-on-year to €2.6m, with the margin falling 13.9% to 40.2%. 

Reflecting on the quarter Raketech CEO, Oskar Mühlbach, said:

“With the turbulence caused, not only by the Covid-19 but also by the suggestions on new, temporary gambling restrictions on the Swedish market we are experiencing a slightly more hesitant attitude from operators investing into, in particular the Swedish market. 

“The market situation is currently volatile and unpredictable. We are and will therefore continue to be extra careful with guiding on the upcoming quarter or year in terms of expected revenues. What we do know is that our operational performance is more stable than ever and that we continue to deliver on our operational goals.”

In early March, immediately before the COVID-19 global lockdowns, Raketech had announced the acquisition of gaming affiliate Lead Republik for €1.6m. 

AYO.NEWS says:

Despite the significant fall in profits, Raketech can at least be thankful that the majority of its revenue derives from online casino (78%), which has been less exposed to the COVID-19 crisis than sports betting (which accounted for just 16.7% in Q1). 

Of course, as we’ve said before, first quarter results don’t really reflect the full impact of the COVID-19 crisis, as lockdowns only really started in mid-March in most countries. The full impact will become clear when Q2 results are published…

‘AYO.NEWS says’ features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited or its affiliates or associates. 

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