22nd Aug 2019 11:17
(Alliance News) - Sportech PLC on Thursday reported losses have widened on an increase in exceptional costs during the first half of a "transitional year" for the betting technology company.
In the six months to June 30, revenue rose by 3.8% year-on-year to GBP32.6 million from GBP31.4 million. On a constant currency basis, however, revenue fell by 1.8% from GBP33.2 million.
Sportech reported a widened pretax loss of GBP2.4 million compared with GBP600,000 in the same period in 2018.
Adjusted earnings before interest, taxes, depreciation and amortisation, other exceptional items and investments in its sports betting unit, rose by 30% to GBP4.3 million from GBP3.3 million. The company made GBP905,000 worth of investments in sports betting, compared with GBP513,000 last year.
Depreciation and amortisation charges rose to GBP3.4 million from GBP2.4 million with exceptional costs, which included redundancy payments, rising to GBP700,000 from GBP500,000.
Foreign exchange movements and adopting a new accounting model led to net finance costs of GBP400,000 compared with an income of GBP100,000 in the interim period in 2018.
Corporate costs fell by 22% to GBP829,000 from GBP1.1 million however following a series of cutbacks.
Segmentally, its Sportech Racing and Digital division, which provides betting technology services to 295 racetracks, reported a 6.3% rise in revenue to GBP17.9 million from GBP16.6 million.
Sportech Venues, which offers betting on horse racing, greyhound racing, and on the jai alai sport in the US state of Connecticut, delivered a 4.0% fall in revenue to GBP15.0 million from GBP15.6 million.
Looking ahead, the company expects full-year trading to be in line with expectations.
Chief Executive Richard McGuire said: "2019 marks a year of transition for Sportech with a clear focus on challenging the predominantly "industrial" culture, whilst driving efficiencies and delivering a range of products that enhance user experience. Rigorous cost management remains a core focus for the group and the board expects to see further benefits going forward from the measures already taken.
"Further digitisation across existing and new business lines, the elimination of certain expensive strategies, the implementation of a lower operational cost base, and an enhanced global suite of products form the roadmap for the second half, positioning the group for 2020 and beyond. Management remain committed to delivering a superior product range to our global clients and remain confident about the group's future potential."
Shares in Sportech were up 1.7% at 33.00 pence each in London on Thursday morning.
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