19th Mar 2020 11:45
(Alliance News) - Sportech PLC on Thursday reported a widened loss in 2019 and warned of the challenges ahead due to the Covid-19 outbreak causing sports to be suspended around the globe.
In 2019, the online gambling and entertainment firm recorded a pretax loss of GBP8.4 million, widened from GBP2.7 million in 2018.
The losses were attributed to increased investment in its Sports Betting business.
Sportech said it made investments to reposition its Bump 50:50 business for digital and subscription growth potential and for the expansion of its digital and iLottery capabilities.
The company also noted competitive challenges faced by its Connecticut Venues business as neighbouring states advanced Sports Betting initiatives, as well losses from its subsequently closed California venues interests.
Revenue was 2.0% higher, however, at GBP64.8 million from GBP63.5 million.
Chief Executive Richard McGuire said: "We continue to progress our strategic agenda focused on driving further development of our group platforms following 2019 growth opportunity investments, whilst managing the inherent cost base. Despite the challenging retail environment and excluding some cost measures taken to reposition the group, our performance in 2019 has been as expected."
McGuire said the company's started 2020 "satisfactorily", but since the Covid-19 outbreak, and the resulting uncertainty, he said the Sportech will find it difficult to give accurate guidance with any certainty for the full-year.
"The situation remains highly uncertain, but clearly Covid-19 will have a significant impact on our business given certain of our businesses are dependent on sporting events continuing, even if behind closed doors," he said.
McGuire continued: "Understandably, the period of disruption is uncertain, but having strengthened our online capabilities during 2019 we are better positioned to deliver a broader service wherever possible.
"Notwithstanding the uncertain short-term outlook, we remain focused on maintaining the group's financial strength with GBP11.0 million net cash and no debt as of the end of February 2020."
Shares in Sportech were untraded in London on Thursday at 12.00 pence each.
By Paul McGowan; [email protected]
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