20th Aug 2015 07:21
LONDON (Alliance News) - Sportech PLC Thursday reported a huge drop in pretax profit in the first half of 2015 as the same period of the prior year had benefited from a VAT refund, and revenue also fell slightly.
The pool betting operator reported a drop in pretax profit in the six months ended June 30 to GBP7.9 million from GBP87.8 million in the first half of 2014, as the prior year benefited from exceptional income in relation to a Spot the Ball VAT refund of GBP87.1 million. Excluding exceptional income, its adjusted pretax profit declined to GBP5.4 million from GBP6.3 million.
Revenue fell slightly to GBP51.0 million from GBP52.6 million as growth in Racing and Digital and Venues was offset by a decline in Football Pools.
"We have built a portfolio of highly regulated businesses in the US and UK, and have continued to invest in each to bring through innovation and technological improvements. We are now well positioned to build upon our unique position, based on our regulated racing and pools operations. Examples include the highly successful replacement of Betfred's Totepool entire hardware and software betting systems, and the realisation of a significant profit on our early online initiatives in New Jersey," Chief Executive Ian Penrose said in a statement.
"Our industry is currently experiencing a period of considerable consolidation, and we continue to explore all options to deliver strategic value for our shareholders. We remain confident in the underlying strength of the business," he added.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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