Thursday August 23,2012 : SPORTECH PLC H1-2012 RESULTS OUT
Revenues up but profits lower due to exceptional costs
The UK gambling group Sportech plc has posted its interim results for the six months ended 30 June 2012, showing the following financial highlights:
* Revenue marginally increased to GBP 57.7 million (2011: GBP 57.4 million)
* EBITDA up at GBP 12.6 million (2011: GBP 12.4 million)
* Adjusted profit before tax of GBP 7.4 million (2011: GBP 7.4 million)
* Profit before tax of GBP 3.2 million (2011: GBP 3.7 million), a decline due to higher exceptional costs
* Strong operating cash flows have reduced net bank debt by 10 percent to GBP 53.4 million (31 December 2011: GBP 59.2 million)
* New GBP 75 million revolving bank credit facility signed in July 2012
Management reports that broadening distribution and modernisation activity continues in the football pool sector, with weekly spend per customer within direct channel equivalent to 15 percent year-on-year. A distribution agreement was signed with France-Pari, and there have been continuing efficiency benefits.
Sportech Racing is making further good progress in the USA, with key tote contracts with California Racing and TVG extended until 2015; good momentum in the Off-Track Betting (betting shop) estate and in telephone betting and seven racing customers now live for the online horseracing tote.
E-Gaming operations are starting to grow after a slow transitionary period, with all products except online bingo now on the Playtech platform, and the single branding of Vernons across all e-gaming websites now complete.
The group expects to launch mobile casino operations in H2-2012.
Ian Penrose, chief executive of Sportech plc, said:
"The Group has increased EBITDA, generated strong cash flows and reduced its net bank debt by 10 percent during the first six months of the financial year.
"Following a period of integration and operational improvements, we are pleased to have secured larger and improved banking arrangements that will facilitate business development and growth initiatives in the near future.
"Management has invested a significant amount of time in our acquired North American gaming business. As a result, more than 30 percent of our profits now come from our North American business, and with the emerging regulatory environment and our unique strategic positioning we expect the region to become an increasingly important area for Sportech.
“Despite the challenging global economic conditions, trading remains in line with management expectations for the full year and we look forward to the future with confidence."