EGR Power 50 2020: Tipico (6)
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06. Tipico (6)
FINANCIALS: Full-year financial results revealed to BDO under a non-disclosure agreement show Tipico once again outperformed most rivals
STRATEGY & IMPACT: Dominance in Germany supported by a solid omni-channel offering via its retail network and its ties to German football via sponsorship deals
GEOGRAPHIC REACH: A major player on the German and Austrian sports betting scene, Tipico has thrown its hat into the ring in the US, starting with New Jersey and Colorado
INFLUENCE & LEADERSHIP: Tipico’s rapid ascent coincided with CVC Partners’ investment and the arrival of industry veteran Joachim Baca from bwin to assume the role of CEO in 2016
Despite once again placing in the upper echelons of the Power 50, and despite its size, Tipico somewhat flies under the radar. Of course, much of this can be attributed to the fact the Malta-based company is privately owned (CVC Partners holds a majority stake) and, thus, analysts, investors and the media aren’t afforded in-depth quarterly insights into financial performance and operational strategies. Such is life.
Nevertheless, this is now the second year in a row that Tipico has finished sixth after the company opened its books in 2018 (seventh position) to BDO for the first time in years. Even though 2020’s figures remain confidential, the operator has once again outperformed household European names on the financial side alone. Indeed, Tipico was ranked an impressive fourth by the accountancy firm in this category.
The 16-year-old operator is a true giant of the German market with its extensive franchise network of betting outlets in the country, as well as neighbouring Austria, supported by a proprietary online sportsbook platform and games. In fact, the firm says that it takes up to eight million bets a day, with 80%-90% being on football, and claims to have cornered a market share of over 50% in Germany when it comes to online betting.
Tipico, which is the official partner of German football’s top-two divisions, also enjoys tremendous brand presence; nine in 10 Germans are aware of the operator. These aforementioned factors put the operator in an enviable position to capitalise on sports betting once the regulated online market in Germany – set to be the second largest in Europe after the UK – goes live in 2021, albeit with restrictions on betting products.
As was reported exclusively by EGR in July, the company has also made a play in the US. Besides forging a partnership with Atlantic City’s Ocean Casino Resort to take one of its available online sports betting licences in New Jersey, a deal was struck with Century Casinos to launch an online sportsbook in Colorado. Lesser-known European brands have tended to struggle to achieve cut-through in the crowded New Jersey market, and Colorado is set to be equally, if not more, competitive. Therefore, Tipico will have its work cut out replicating anything like the brand awareness closer to home. Achieve that, though, and penetrating next year’s top-five is a distinct possibility.