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Mixed earnings results for Sportech

Wednesday March 4,2015 : SPORTECH DELIVER MEDIOCRE RESULTS

Beats internal expectations says CEO

Sports betting and pools operator Sportech, presenting its preliminary results for the twelve months ending December 31, 2014, said its focus on highly regulated markets had resulted in a strong performance from its Sportech Racing and Digital division and a satisfactory performance from its Football Pools product, however, its Sportech Venues business environment remained challenging.

Key performance indicators include:

Sportech Racing and Digital delivered an EBITDA of GBP 8.1 million (2013: GBP 7.3 million) driven by improved margins
Sportech Venues : an EBITDA of GBP 3.2 million (2013: GBP 4.5 million).
Football Pools: an EBITDA of GBP 16.6 million (2013: GBP 17.4 million)

Ian Penrose, Chief Executive of Sportech PLC, commenting on the results, said:  "Investment in our core technology and people has delivered a strong performance in our US-based betting technology business and The Football Pools has had a good year. Our Venues division had a challenging year, but continues to lay foundations for long term growth.”

Looking ahead, Penrose said regulatory approvals for new venues and the launch of Connecticut’s only legal betting website set a positive outlook along with the group’s entrance into iGaming and sports markets in the US with Resorts Casino Hotel.

Sportech entered the in-stadia sports raffle market for professional sports teams in the NFL, NHL, NBA and MLB with the acquisition of Bump Worldwide Inc. in June 2014, a Toronto-based provider of electronic charitable raffles conducted during professional sporting events known as '50/50 raffles.
 
“These are exciting times for the global gaming industry. Regulatory and tax changes are presenting opportunities for those focused on highly regulated markets. Sportech continues to make progress in line with our strategy of developing a leading international position, with a particular focus on the US,” Penrose concluded.



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