It’s been two years since John Connelly took the helm as CEO of Slovenian multi-player specialist, Interblock. Te first year of that tenure, Interblock embarked upon an infrastructure development phase, with Mr. Connelly expanding the breadth and depth of the business, creating not just a truly global company, but at the same time a 360 view of the player in the ETG segment. Year two saw lean management, product life cycles, detailed budgeting processes, the opening of offices on several continents and investment in support and service structures. At the most recent G2E show in Vegas, Interblock expanded its ETG products: releasing 12 new products with the goal of increasing the North and South America casino floor footprint to over five per cent ETGs (up from its current base of one to two per cent).
For Mr. Connelly, achieving a marked increase in the ETG share of casino floors in North and South America begins with the collection of data. Supportive, undisputable data that ETGs are currently misunderstood and maligned by operators who continue to evaluate multi- players in the same category as slot machines.
“Looking at the last 24 months, we have been successful to a degree in providing the industry with data – substantial data – directly concerning the ETG segment,” stated Mr. Connelly at ICE 2017. “ETGs have been a segment that has been misunderstood for quite some time. Historically, ETGs have been managed and evaluated under the slot machine category; the result of categorising the floor into either slots or tables revenues. Interblock has been working with some of the largest operators in the world to gather data on electronic table games to create a classification of its own. As a result, we’re now seeing reporting structures that enable operators to spend their capital appropriately and execute their business strategies while recognising the contribution ETGs make to their floors.”
It’s a solid strategy to present operators with undisputable data as to the value of ETGs, but as we question, Mr. Connelly has evangelised ETG gaming with operators - studied, researched both the sector and its players and delivered those results to operators. How does that translate to Interblock success when there are so many ETG developers/suppliers in this same sector? Hasn’t Interblock made their job a lot easier too?
“Tere is a case that we’ve been clearing the road for others to follow,” agreed Mr. Connelly. “However, if you are looking to provide ETGs in this sector, the ability of that supplier to provide operators and players with the same quality of product and depth of information isn’t easy to accomplish. We are fortunate at Interblock that we focus on a single segment of the casino floor, while other suppliers have to split their attention across separate segments, whereby the opportunity to do that well is much lower. We have seen a tremendous increase in our product offering in 2017. We have a way to go towards achieving a critical mass,” said Mr. Connelly, “but things are starting to snowball. I believe we will reach that point in 2017, just in terms of pure growth we are seeing in our own company in the past 24 months.”
On a show floor at ICE that continues to chart
Multi-player specialist Interblock is forging a different path to its direct competitors, striving to define the role of the ETG on operator floors
G3 interviews Interblock CEO, John Connelly, after two years in the driving seat of the Slovenia-based mult-player company. What has been achieved in that time and what path is Interblock taking next as the industry craves consolidation?
suppliers in any business is dangerous and can directly impact upon the level of innovation and variety of the competitive offering to which the industry has access. We’ve taken a view that focusing on one thing and doing it really well is more valuable than focusing on five and doing them adequately.”
Interblock CEO, John Connelly
the M&A consolidation of a business that’s shifting towards one-stop-shop solutions and omni-channel product delivery, the focus on a single segment of the casino floor appears to be moving against the traffic. Te acquisition of direct competitor, Gold Club, sees Win System embarking on a 360 degree plan to offer every element of the gaming experience from a single provider. So is Interblock being isolationist in its focused view?
“While I understand the 360 degree stance, my feeling is that the industry is trending in the opposite direction,” commented Mr. Connelly. “It’s craving variety and diversification. Consolidation is not something operators think is healthy for the sector. Having just one or two
Interblock has been working with operators to gather data on ETGs to create a classification of its own. As a result, we’re now seeing reporting structures that enable operators to spend their capital appropriately and execute their business strategies while recognising the contribution ETGs make to their floors.
Interblock is a private company and as such its sharing of information with the market has been on a need-to-know basis. Press information and statements from Interblock have concentrated on Mr. Connelly’s efforts to establish ETGs as a category separate from slots and tables, but has recently de-focused attention on sales of products and installation. “As a private company there is less need to share with competitors what we are doing on a daily basis,” stated Mr. Connelly. “We are focused on making Interblock the best ETG company in the gaming sector, providing customers with the greatest level of service and support. Over the past two years we have been expanding the company globally, creating a product offering that will be three times greater than in 2014 – and that’s occupied most of our time.”
“To be a successful global company you need to build infrastructure that has the ability to penetrate various regions around the world,” continued Mr. Connelly. “Te key success factor in achieving financial security is tied to global diversification. Our objective is international diversity in virtually all regulated markets. Where we see the greatest return for time and energy in the coming months and years, our data suggests the value proposition is positive in all regions. In 2015-16 Interblock achieved double digit growth both domestically and internationally.”
It’s Mr. Connelly’s view that the ETG segment as a whole is now understood by operators as generating benefits essential to the growth of their floor. It’s been a data-driven conversion that has also helped Interblock better understand its customer-base in regional markets. “We have been able to learn and understand the demographic trends within each of the markets that we serve and have adjusted our R&D roadmap accordingly,” described Mr. Connelly. “Te results are on the show floor at ICE, with product tailored to individual types of players from around the world.”
And does this structured growth, trebling of the product portfolio and increase of office infrastructure, processes and global staff, have an obvious M&A conclusion? “Our three year strategic plan caters for the growth of the business in relation to its needs,” said Mr. Connelly. “Having a history of M&A activity, I’d relish the opportunity to bring accretive value to the organisation.”
NEWSWIRE / INTERACTIVE /
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