Gtech (NYSE:GTK)
Historical Stock Chart
From Jul 2019 to Jul 2024
![Click Here for more Gtech Charts. Click Here for more Gtech Charts.](/p.php?pid=staticchart&s=NY%5EGTK&p=8&t=15)
GTECH Announces Joint Venture with Veikkaus Oy
Organizations to Collaborate in the Development of Government-Sponsored Games
and Solutions Over Emerging Interactive Channels
WEST GREENWICH, R.I., June 21 /PRNewswire-FirstCall/ -- GTECH Holdings
Corporation (NYSE:GTK) today announced that GTECH Global Services Corporation
Limited, a wholly-owned subsidiary of GTECH Corporation, has entered into a
joint venture agreement with Veikkaus Oy, the operator of the Finnish national
lottery, to develop and market innovative new games and solutions for the
lottery and gaming industries. The primary focus of the joint venture is the
development of government-sponsored games and solutions over expanding
interactive channels such as Internet, mobile telephony, and interactive
television, with a main emphasis on sports betting. GTECH will hold an 81
percent equity stake in the joint venture, with the remaining 19 percent held
by Veikkaus. The joint venture will be located in Finland, and initially
staffed by Veikkaus personnel. The joint venture agreement is expected to
close and be operational in the third quarter of this fiscal year, subject to
certain closing conditions in the agreement.
"Our joint venture with Veikkaus is another important step we are taking to
enhance our solutions and game content portfolio, and deploy it over the widest
array of channels available in the industry," said GTECH President and CEO W.
Bruce Turner.
"We believe the core assets of our two organizations can be effectively
leveraged to allow us to accelerate the development of new games and solutions
by creating an incubator setting, with the primary objective of developing
government-sponsored games and solutions over the rapidly-growing interactive
channels," continued Mr. Turner.
"GTECH brings to the table an unparalleled level of technical skills, industry
expertise, reliability, and global credibility," said Veikkaus CEO Risto
Nieminen. "This joint venture will provide Veikkaus with enhanced game
innovation, particularly for our interactive channels. It also provides a
platform for new games and solutions that can be produced and marketed more
rapidly and more effectively for Veikkaus' core business -- delivering lottery
games for Finnish consumers."
GTECH will also benefit from Veikkaus' successful track record of developing
new games and cultivating business relationships necessary to deploy new games
beyond the traditional retailer-assisted distribution channel. Veikkaus was
the first lottery in the world to introduce Internet betting and live sports
betting, among many other innovations. "When combined with the strength and
resources that GTECH brings in the areas of research and development, and
technology and infrastructure, this joint venture will play a powerful role in
the accelerated development of new solutions and game content required to
advance GTECH's overall objective in the gaming industry, which is serving our
customers," said Mr. Turner.
The joint venture will continue Veikkaus' long tradition of innovation by
developing new solutions and games for Veikkaus' implementation, and for GTECH
to productize and commercialize these innovations worldwide. The joint venture
will realize revenue from GTECH's commercialization and licensing of new games
and solutions developed by the joint venture.
"There is a lot we can learn from Veikkaus about their approach to game
development, but also in terms of interactive channel experience and, maybe
most importantly, keen insights we can gain into the European marketplace,"
said Mr. Turner. "And, it provides another advanced environment for pilot
testing these innovative games and solutions."
Certain statements contained in this press release are forward looking
statements within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. The Company identifies
forward looking statements by words such as "may," "will," "should," "could,"
"expect," "plan," "anticipate," "intend," "believe," "estimate," "continue," or
similar words that refer to the future. Such statements include, without
limitation, statements relating to the prospects and financial outlook for the
Company, which reflect management assumptions regarding: (i) the future
prospects for and stability of the lottery industry and other businesses in
which the Company is engaged or expects to be engaged, (ii) the future
operating and financial performance of the Company (including, without
limitation, expected future growth in revenues, profit margins and earnings per
share), and (iii) the ability of the Company to retain existing business and to
obtain and retain new business. Such forward looking statements reflect
management's assessment based on information currently available, but are not
guarantees and are subject to risks and uncertainties that could cause actual
results to differ materially from those contemplated in the forward looking
statements.
These risks and uncertainties include, but are not limited to, those set forth
above, in the Company's subsequent press releases and on reports by the Company
on Forms 10-K, 10-Q and 8-K, and other reports and filings with the Securities
and Exchange Commission, as well as risks and uncertainties respecting: (i)
the potential impact of extensive and evolving government regulations upon the
Company's business; (ii) the ability of the Company to continue to retain and
extend its existing contracts and win new contracts; (iii) the possibility of
slower than expected growth or declines in sales of lottery and gaming goods
and services by the Company or the Company's customers; (iv) exposure to
foreign currency fluctuations; (v) risks and uncertainties inherent in doing
business in foreign jurisdictions; (vi) the relatively large percentage of the
Company's revenues attributable to a relatively small number of the Company's
customers; (vii) the possibility of significant fluctuation of quarterly
operating results; (viii) the intensity of competition in the lottery and
gaming industries; (ix) the possibility of substantial penalties under and/or
termination of the Company's contracts; (x) the ability of the Company to
respond to technological change and to satisfy the future technological demands
of its customers; (xi) opposition to expansion of lottery and gaming; (xii) the
Company's ability to attract and retain key employees; and (xiii) the
possibility of adverse determinations in pending legal proceedings.
GTECH is a leading gaming technology and services company. With more than $1.2
billion in annual revenues and 5,300 people in over 50 countries, GTECH
provides integrated technology, creative content, and business services to
effectively manage and grow today's evolving gaming markets. In targeted
emerging economies, GTECH also leverages its operational presence and
infrastructure to supply commercial transaction processing services. For more
information about the Company, please visit GTECH's website at
http://www.gtech.com/.
Contact: Robert K. Vincent
Public Affairs
GTECH Corporation
401-392-7452
DATASOURCE: GTECH Holdings Corporation
CONTACT: Robert K. Vincent Public Affairs of GTECH Corporation,
+1-401-392-7452
Web site: http://www.gtech.com/