SBC News Voice of the Sports Betting Industry
Reporting on its 2014 full year financial performance, football pools and betting operator Sportech recorded declines in top line metrics as the firm reported a 2% decline in group revenues of to £104 million (FY 2013: £106 million).
The firm further recorded a 5% decline in EBITDA earnings to 24 million (FY 2013:£25.3 million)
Despite its decline in overall group performance, Sportech plc was able to report growth in its racing and digital division which delivered a EBITDA earnings of £8.1 million (FY 2013: £7.3 million).
The division was aided by the agreement of a new supply contracts with Betfred’s Totepool business, and the continued performance of its racing partnerships with Danske Spil (Denmark) and Penn National (USA)
Revenues from Sportech’s land-based venues in the US, which include its flagship Winners venue in Connecticut, were down almost 5% to £32.5m due to unfavourable foreign exchange rates.
The operator will hope that the re-brand and re-launch of its football betting pools product will aid company performance, as the vertical saw a decline in 2014 EBITDA earnings to £16.6 million (FY 2013: 17.4 million), despite attracting a record number of new customers to its classic pools subscription business.
Ian Penrose, Chief Executive of Sportech PLC, said:
“We are pleased that we finished the year ahead of our internal expectations. Investment in our core technology and people has delivered a strong performance in our US-based betting technology business and The Football Pools has had a good year. Our Venues division had a challenging year, but continues to lay foundations for long term growth. Regulatory approvals for new venues and the launch of Connecticut’s only legal betting website followed positive reaction to the opening of our flagship facility in Bradley.
Sportech 2014 Performance Overview
