Sportech posts unimpressive H1-2018 results

Sports betting technology company Sportech has posted a less than impressive set of H1-2018 results, reporting deepening losses as a new sports bar in the US failed to perform as well as expected and margins remained under pressure.

Pre-tax losses for the six months through June amounted to GBP 602,000, compared to a GBP 320,000 in the same period last year, whilst revenue fell 5.7 percent to GBP 31.6 million, though on a continuing operations and constant currency basis it edged 1.3 percent higher.

On an adjusted basis, from continuing operations, the company swung to a GBP 200,000 loss, compared to a GBP 900,000 profit on-year.

Chief executive Andrew Gaughan highlighted the striking down of the federal PASPA legislation in the USA by the Supreme Court earlier this year, saying that it had opened up exciting prospects for that market.

‘In Connecticut, we believe that we will have a strong direct-to-consumer sports betting offering for our brick-and-mortar and web/mobile betting services,” he pointed out. “We also believe that we are very well positioned to offer a competitive integrated sports and race betting solution in other US states.”

He noted that the company’s Stamford, Connecticut Bobby V’s Restaurant & Sports Bar has begun to grow both in terms of handle and food and beverage sales.

Gaughan observed that Sportech’s Racing and Digital business maintained consistent levels of service revenues for H1 2018 versus the prior year, and that management continued to assess further operational efficiencies to maintain profit levels.

The company recently concluded a previously announced sale of Dutch unit Sportech BV, realising Euro 2.8 million (GBP 2.5 million).

However, Gaughan acknowledged that growth has been slower than forecast.