(Alliance News) - Betting technology firm Sportech PLC said Monday it expects earnings for 2019 to be ahead of expectations, as it continues to increase operational efficiencies within the group.
For the year, Sportech expects adjusted earnings before interest, taxes, depreciation and amortisation, excluding Sports Betting investments, to be ahead of expectations, while revenue remains in-line.
For 2018, Sportech's adjusted Ebitda excluding Sports Betting was GBP8.0 million on revenue of GBP63.7 million.
Sportech said it has taken "positive decisions" to restructure the group, exit non-profitable activities and streamline costs. This is expected to impact exceptional costs in 2019, but deliver returns in the long term.
Also, Sportech has focused on reducing its low return capital expenditure projects, which will lead to reduced capex for the year compared to 2018.
The group said its business units, including Racing, Digital, Bump 50:50 and Lottery, are expected to report net contribution growth in 2019, while it works to reduce the high fixed costs of the Venues business.
"Sportech now has a management team in place to transform the business to drive growth and efficiencies. We have extricated the group from a number of historically expensive strategies, delivered an efficient and lower operational cost base, and we are now much more confident in the group's ability to deliver significant value to our clients and shareholders," said Chief Executive Officer Richard McGuire.
Shares in Sportech - which is headquartered in Bristol - were up 0.5% at 32.97 pence on Monday in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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