London-listed racing and wagering systems supplier Sportech Plc continues its group North American strategic alignment as the company reports a flat interim performance for H1 2018 trading (period ending 30 June).
Year-to-date, Sportech records group revenues of £31.6 million, matching its corresponding H1 2017 performance, with period profits of £23million (H1 2017: £22.8 million).
However, undertaking a number of corporate adjustments, designed to accelerate the firm’s position within the liberalised US sports betting market, Sportech governance declares a lower adjusted EBITDA of £2.8 million (H12017: £3.4 million), combined with a period operating losses of £600,000.
Closing its H1 2018 trading, Sportech holds a cash reserve of £12.5 million with no corporate debt. Corporate cash has been further extended by £2.5 million secured through the sale of Dutch racing asset Sportech Racing BV sale.
As anticipated, all period highlights are concentrated on North America, with Sportech governance outlining the firm’s recent deal with Sportradar to implement its comprehensive sports betting solutions across its US portfolio.
Furthermore, the trading period saw Sportech secure its new leadership team of Andrew Gaughan (CEO), supported by Thomas Hearne as group financial lead.
Andrew Gaughan, Chief Executive Officer of Sportech PLC, said: “The May 2018 US Supreme Court decision that effectively permitted US states to enact legislation to license and regulate sports betting was very exciting for Sportech. Soon after the decision was announced, we signed an agreement with Sportradar for sports betting data, trading and risk management services, and technology platforms.
We concluded the previously announced sale of Sportech BV, realising €2.8 million (£2.5 million), enhancing our cash reserves, and providing capital to execute on our US sports betting opportunities.
Our Racing and Digital business maintained consistent levels of service revenues for H1 2018 versus the prior year. We continue to assess further operational efficiencies to maintain profit levels in the business. We also believe the market outside of North America is moving to more service-based contracts versus one-time sales contracts and are positioning our teams accordingly.
Our Stamford, Connecticut Bobby V’s Restaurant & Sports Bar has begun to grow both in terms of handle and food and beverage sales. Growth is slower than originally forecast, but we expect our new highly-experienced Food and Beverage and Group Sales Managers to deliver a beneficial impact as we enter the 2019 financial year.”