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Sportech Q1-2016 Trading Update
Tuesday May 17,2016 : SPORTECH RELEASES TRADING UPDATE
Positive Q1 results posted.
Pool betting specialists Sportech plc has issued a trading update for the period from 1 January 2016 to 16 May 2016, reporting:
* Positive start to 2016 for the group, with trading in line with management expectations, having made significant operational improvements and achieved a number of new customer wins:
* Success in VAT litigation against Her Majesty's Revenue and Customs
* Sportech Racing and Digital opened new offices in Singapore and secured new business. The company has also secured a new contract to deliver a full suite of wagering systems for the Macau Jockey Club, in addition to the recently announced new system sales in Malaysia and Vietnam, whilst a large terminal order has been shipped to Tabcorp in Australia;
* Technology and wagering installed for two new North American customers, Lone Star Park and Remington Park, and Sportech technology now available across racetracks in the UK to process all Tote wagering;
* Bump 50:50 continued to progress, growing its market share in the evolving area of providing technology for in-stadia electronic lotteries. Bump has added 7 new customers to its roster including the Jacksonville Jaguars (NFL), Dallas Stars (NHL) and San Diego Padres (MLB). Bump 50:50 remains on target to deliver profits in 2016 for the first time;
* Sportech Venues achieved progress in several areas. Of particular note, Internet wagering on MyWinners.com is up 17 percent compared to the same period last year, and the company has seen significant improvements in food, beverage and wagering revenues at our flagship venue in Bradley, Connecticut.
* The company will soon commence the construction in Stamford, which will be the first sports bar, restaurant and wagering facility in that major city, close to the New York border.
* The company's first venue in California opened in San Diego in January and is currently experiencing an upturn in food, beverage and wagering revenues after a slow but steady start in establishing the new concept.
* The wagering business in the Netherlands has experienced growth for the first time in a number of years, with handle up 10 percent on the same period last year.
* Football Pools performed to expectations, with a modernisation initiative on-track and due for completion shortly. The company launched The Football Pools app in March;
* Board changes are afoot, with non-executive director Peter Williams departing.
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