Sportech issues "reassuring" trading update
Analysts say there are plenty of catalysts for growth at the online horserace wagering operator
Sportech this morning issued a trading update in which it said revenues from its racing and digital business were “slightly above” the previous year.
The London-based horse race wagering operator said it continued to win contracts during the period from 21 August to 9 November with the likes of Penn National Gaming in the US.
The firm also said it was pushing ahead with the integration of its Quantum Tote system with Betfred’s Totepool offering following its initial launch at Royal Ascot back in June.
Bump Worldwide, its 50:50 raffle business, continued to make progress after signing up with a number of new teams such as Colorado Avalanche and the Denver Nuggets.
Revenues from its MyWiners.com horse race wagering site in Connecticut were up 53% on the previous year, but the firm said it continued to face competition from unlicensed sites operating in the state.
Its Football Pools business saw new player acquisitions via digital increase 29% year on year to 9,000 off the back of “extensive trials” of new online acquisition channels.
Peel Hunt analyst Nick Batram said overall it was a “reassuring update” and that trading was broadly in line with expectations with “no lack of catalysts” for future growth.
The news comes after a busy few weeks for Sportech, which yesterday announced potential takeover talks with Contagious Gaming had been terminated.
However, the firm said it had received “more than one” proposal to acquire its Football Pools business having declined a £75m earlier in the year.
“Although the Contagious talks have ended, we believe that the group is moving closer to the event or events that will realise some of the inherent value within the business,” Batram said.
“A disposal of the Football Pools would also see Sportech become a focused and predominantly regulated US business,” he added.
Sportech’s share price was down 1.4% to 53.74p at the time of writing.