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LADBROKES TO USE SPORTECH POOL PRODUCTS
New agreement could be the forerunner of other deals
Sportech CEO Ian Penrose has announced an agreement with the UK online and land betting group Ladbrokes, which will distribute its pool products through the internet to the Ladbrokes’ database. Penrose noted that the deal could be the forerunner of others as Sportech seeks to increase player liquidity, hoping to close at least another two agreements before the end of 2010.
“We are looking to increase our liquidity and there are two ways we can do that, either with a B2C strategy or by selling-on our white labelled football products for a set commission and a share of revenues,” he said, adding that such deals would add value to online gambling operations.
Penrose was commenting in a statment on the company's first half 2010 financial results, in which Sportech reported a drop in adjusted profit before tax, down from GBP 6.9 million in 2009 H1 to GBP 5.8 million for the first half of 2010.
The group succeeded in raising GBP 29.2 million in equity funding and reduced net bank debt by 35 percent to GBP 51.7 million over the period.
The statement advised that "above average" visitor numbers had been recorded in the past two months of its Indian online operations, with 45 000 people registering to play. Sportech is involved in the region in a joint sports betting venture with Indian operator PlayWin (see previous InfoPowa reports) in which the partners each invested GBP 2 million.
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