London Capital (LCG.L) - confirms white label deal with Paddy Power LCG.L
Comment by Objective Capital , Sep 10, 2007 Questions?
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London Capital confirmed the recent launch of its white label spread betting relationship with Paddy Power. Paddy Power is the largest provider of fixed odds sports betting in Ireland. The company operates through licensed betting offices along with operating Ireland's largest telephone, online, poker and casino betting operations.
Objective's view:
The white label agreement with Paddy Power was concluded earlier in the year and is one of a number of white label arrangements entered into this year: five were concluded during the first half. Paddy Power is the most high profile to date. LCG views white label arrangements as a way of increasing business in markets where there is little awareness of its own Capital Spreads brand, i.e. overseas or where it has not been actively marketing itself. LCG pays away a portion of the revenues generated to its white label partner but client acquisition costs are kept low and the overseas marketing costs which are invariably higher than domestic marketing are avoided. LCG had a very strong first half and we expect the white label arrangements to help maintain momentum in the second half of the year.
