13th May 2014 09:43
LONDON (Alliance News) - Online gambling and sports-entertainment company Sportech PLC Tuesday said overall trading in the first quarter remained in line with expectations, despite severe winter weather in the US in February hindering its US operations.
The pools and tote betting services provider said the severe winter weather in the the US northeast in February hit trading at its retail venues business, due to a high number of race cancellations and being forced to close its retail venues for several days during the period.
In the first four months of the year, there were a remarkable 237 race cancellations compared to 74 in 2013 and only 27 in 2012, which Sportech said had resulted in a "consequential impact on business performance" as well put pressure on its operating margins.
Meanwhile, Sportech said its investments in new online and mobile pools betting products are reaping rewards and have created strong sales interest.
The group also said its football pools modernisation plan continues to progress, with over 7,000 new players acquired since the beginning of the year, helping the core direct channel move closer to a stabilisation of player numbers.
It said the recruitment is being driven by telephone and digital marketing activity, and through its website, www.footballpools.co.uk, while the overall decline in players in the direct channel continues to slow as a result of modernisation and the increase in new player acquisition.
"The football pools business remains in line to meet expectations for the full year," the company said in a statement.
Earlier this month, Sportech said the appeal of its GBP95 million VAT repayment claim in the UK was heard by the Upper Tribunal on April 29, April 30 and May 2, and it has been advised to expect a decision from the Upper Tribunal in the summer.
The VAT repayment claim, in respect of the "Spot the Ball" game, was successfully determined in the group's favour by the First-Tier Tax Tribunal in March last year, but UK tax authority HMRC is appealing the decision to the Upper Tribunal.
Sportech shares were up 0.9% at 83.49 pence Tuesday morning.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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