Sportech H1 digital revenues grow 3%
Contract wins and operational improvements boost performance, but Football Pools stakes drop
Sportech saw revenues within its Racing and Digital business increase 3% for the first half of the year, growth the company attributed to contract wins and operational improvements.
Total revenue increased to £17.8m for the period ending 30 June 2016, a 3% rise from the £17.2m reported for the same period last year. EBITDA for the division also grew by 5% to £4.3m in H1.
The company said the growth demonstrated the repositioning of the business following the loss of its former California Tote contract in October 2015, which contributed £1.4m alone to the business in the first half of last year.
New service contract wins made positive contributions to the business, as well as revenue from system software and equipment sales which increased by 46%.
Meanwhile, the company’s UK-based Football Pools business reported a 19% decline in revenues to £14m for the first half of the year, while EBITDA fell 3% to £7m.
Revenues for the Group fell 5% to £48.7m, while EBITDA for the period remained in line with last year at £11.1m.
Ian Penrose, chief executive of Sportech PLC, said he was “pleased” trading for the first half of the year was in line with the management’s expectations as the Group looks to return to growth.
“We have reached a key stage in our development, as our US business makes progress in both existing and new markets around the world, and our Football Pools business has reached expected stability after a number of years of modernisation,” said Penrose.
“Overall, the Board is pleased with the strategic position that each of its divisions has secured, whilst recognising that each division will require further investment, ahead of anticipated revenue and profit benefits, to enable them to deliver their full potential.”
In other news, the company has also appointed Richard McGuire to the Sportech board as a non-executive director with immediate effect.
The 49-year-old has previously served as non-executive chairman of Timeweave plc, joint owner of horseracing TV channel Turf TV.
“I am delighted to welcome Richard to the Board as a non-executive director,” Roger Withers, chairman of Sportech PLC, said.
“His experience and business knowledge will be of considerable benefit to the Group,” he added.