Sportech H1 revenues flatline despite strong US growth
UK-based firm continues to focus on growing its US business as it prepares to launch a real-money online casino platform in NJ next year
Sportech posted a small decline in revenues for the first half of 2014 despite strong growth in its US operations during the period, which now account for roughly two-thirds of total business.
At constant currency comparisons, digital revenues were down marginally from £1.9m to £1.8m with EBITDA up from £0.2m to £0.5m. However, excluding FX headwinds, digital revenues were down £1m from the £2.8m reported in 2013.
Like-for-like group revenue fell to £52.6m during the six months ended 30 June 2014, leading to a £0.5m decline in EBITDA to £12m, although it increased marginally (1.7%) in constant currency.
Profit after tax for the Sportech group was up a massive 5207% in H1 to £69m following the receipt of a £93m tax rebate from the UK tax authority back in June.
Sportech’s US business showed strong growth with 64% of revenues now derived from its stateside operations and this looks likely to increase further as the UK-based company prepares to launch a real-money gaming platform in New Jersey in early 2015.
“We are pleased with the progress we have made in the first half, and in particular with the strategic momentum we have continued to build in our US business,” Sportech CEO Ian Penrose (pictured), said.
“We are expanding our retail betting estate, developing an online betting offer on horseracing and rolling out egaming products as regulation allows.”
“Like all companies with interests in the US, the reported results have been negatively impacted by the strength of sterling. On a constant currency basis the group remains in line to meet its expectations, although at current exchange rates the reported result will be adversely impacted for the full year,” he added.
Sportech will continue to focus on the US for the second half of the year with plans to build more sports betting venues in Connecticut, where it processes all of the states online wagers, and in California.
It will also launch a real-money online casino offering in New Jersey through its SNG Interactive joint venture with NYX Gaming and land-based partner Resorts Casino.