22 May 2019 07:00
For immediate release | 22 May 2019 |
SPORTECH PLC
('Sportech', the 'Group' or the 'Company')
AGM Statement & Notice of Interim Results
Sportech, the international betting technology business, will hold its Annual General Meeting ('AGM') at 10.00 a.m. today at the offices of Buchanan Communications, 107 Cheapside, London EC2V 6DN. At the AGM, the Executive Chairman, Richard McGuire, will make the following statement:
"The Group has made progress during 2019 implementing the strategy to drive longer term profitability (as set out on 21 March 2019 in our full year results for the year ending 31 December 2018) and we continue to trade in line with Board expectations.
"In Tote Services, we continue to secure new and extend various existing client contracts across all geographies and also maintain a focus on enhancing the system capability and innovation. Sportech's Quantum Tote software recorded a successful Kentucky Derby day when processing almost 100 million betting transactions via more than 13,000 points of sale across the US and recording a 14% growth in Sportech's own retail internet volume.
"The global horse racing Tote market is showing signs of stabilisation and management continues to focus on driving further efficiencies, specifically managing the cost base whilst developing innovative new products and strengthening our digital capabilities to deliver a relevant, exciting and comprehensive product suite to the market.
"Sports Betting legislation in Connecticut, where Sportech is headquartered, employs 400 staff and has extensive business interests, remains a core objective for the Group. Sportech continues to work with all relevant parties to seek a solution, however the 2019 Connecticut General Assembly Regular Session adjourns on 5 June 2019 and there can be no certainty the relevant Sports Betting legislation will be passed prior to this date.
"Our Venues business held a successful first two legs of the US Triple Crown, however US horseracing handle remains challenging and is further tested by neighbouring States such as New Jersey, Pennsylvania and Rhode Island offering Sports Betting, which has attracted some of our more significant retail customers. Management remains focused on seeking appropriate Sports Betting licensing and is ready to deliver Sports Betting opportunities in line with the State legislative timetable, as noted above.
"The fixed cost base of certain properties remains an area of focus and management has formulated plans to improve profitability and drive efficiency across the division in the short to medium term.
"Our Lottery division reported a solid start to the year and continues to develop new opportunities and deliver innovative solutions to existing clients. Revenues are in line with expectations, growing at circa 10% year-on-year.
"At Bump 50:50 our developers continue to devise system enhancements providing clients greater control over the management of their raffle programs, delivering efficient customer service demands, and improved cost management. Bump continues to pursue opportunities and strategies in both US professional and collegiate sports, while seeking to expand its global reach. With legal requirements for mobile and online raffles becoming more accessible in new jurisdictions Bump continues to focus on this initiative to deliver incremental cost-effective returns.
"It is an incredibly busy time for the Company. We have a dedicated and experienced management team and workforce. Together, we remain committed to improving Sportech's capabilities to clients; enhancing our product range and driving efficiencies across every division to position the Group for efficient sustainable growth."
Notice of Interim Results
The Group will announce its interim results for the six months ended 30 June 2019 on Thursday, 22 August 2019. An analyst briefing will be held at 9.30 a.m. on that date at the offices of Buchanan Communications, 107 Cheapside, London EC2V 6DN.
Publication on website
A copy of this announcement is also available on the Company's website at www.sportechplc.com.
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Contacts:
Sportech PLC | Tel: +44 (0) 20 7466 5000 |
Richard McGuire, Executive Chairman |
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Peel Hunt | Tel: +44 (0) 20 7418 8900 |
(Corporate Broker to Sportech) Dan Webster / George Sellar / Guy Pengelley |
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Buchanan | Tel: +44 (0) 20 7466 5000 |
(Financial PR adviser to Sportech) Henry Harrison-Topham / Mark Court / Jamie Hooper | sportech@buchanan.uk.com |
Notes to Editors:
About Sportech
Sportech PLC, the international betting technology business, provides and operates betting technology solutions for some of the world's best-known gaming companies, sports teams, and horse and greyhound racetracks, as well as owning and operating its own gaming venues in Connecticut under exclusive licences.
The Group focuses on highly regulated markets worldwide. It has more than 27,000 betting terminals deployed to over 400 clients in 37 countries. Its global systems process nearly US$12 billion in betting handle annually. In the US, it operates under 35 licences across 37 states. The Group has invested over US$60 million in the last five years in the successful expansion of its US gaming Venues and in developing its technology services, resulting in its proprietary Quantum™ System being the most widely deployed pari-mutuel betting system globally.