24 May 2017 07:00
AGM Trading Update
Sportech PLC ("Sportech" or "the Group")
In advance of the Group's AGM at 10.00am today, Sportech PLC, one of the world's leading pool betting organisations, issues the following trading update for the period from 1 January 2017 to 23 May 2017.
Group Overview
The Group has seen a positive start to 2017, and is trading in line with management expectations. We expect that the Football Pools will be accounted for as a discontinued activity.
We announced the sale of the Football Pools business in March 2017, which was approved by shareholders at the General Meeting held on 19 April 2017. Completion of the transaction is subject to the purchaser, OpCapita, receiving appropriate licensing from the Gambling Commission. In line with the timetable set out, we anticipate the Gambling Commission decision in the next few weeks, which would enable the transaction to complete prior to the end of June.
In March, we completed the Tender Offer to purchase and then cancel 10% of the Group's Issued Share Capital, spending approximately £21m to repurchase 20.6m shares at a price of 101.5p.
Sportech Racing and Digital
Sportech Racing and Digital has had an encouraging period to date in 2017. The investment that has been made over recent years in upgrading our gaming technology has brought in new business, and the opening of our office in Singapore is delivering results in a region where we have previously had few customers. In Asia, the contracts that we secured last year in Macau, Vietnam and Malaysia are performing well, and we expect additional customers to be announced shortly. Furthermore, we have seen notable gains in utilising our global infrastructure to allow customers access to international betting pools. This expansion into Asia has helped to diversify and grow the division's revenues beyond its core North American marketplace, where industry betting turnover remains broadly flat.
Bump 50:50 continues to make encouraging progress, growing its market share in the evolving area of providing technology for in-stadia electronic lotteries. Bump, which is now making a positive contribution to the Group, has added 5 new professional sports teams to its roster including the Atlanta Braves baseball team.
Sportech Venues
It has been a solid start to the year for our Venues business, with progress in several areas. We expect to open our 20,000 sq ft flagship sports bar, restaurant and betting facility in downtown Stamford within the next few weeks following an investment of over $7m, and are working to receive licensing for a further venue in Danbury, Connecticut.
We had our second-best betting numbers on record for the Kentucky Derby earlier this month, and of particular note, Internet wagering on MyWinners.com is up 7% compared to the same period last year.
As previously highlighted, our wagering business in the Netherlands which accounts for around 5% of Group Revenue has been operating under a licence that was previously extended to the end of June 2017. We will hear in the next few weeks whether we have been successful in obtaining a further licence extension from the Ministry of Justice to operate on an exclusive basis for the next few years.
Football Pools
The Football Pools business has been operating under a sale process for most of this year. As a result, we are pleased with the progress being made, in particular with the launch of the new retail initiative, and thank the employees for their significant contributions to both the Football Pools business and the Group during this transitional period.
Board Change
As we announced last month, Roger Withers will today retire as Chairman of Sportech. Richard McGuire will be appointed as the new Chairman of Sportech, and we also welcome Richard Cooper as a Non-Executive Director.
AGM and Results
The 2017 Annual General Meeting will be held at the offices of CMS Cameron McKenna Nabarro Olswang LLP, 78 Cannon Place, Cannon Street, London EC4N 6AF today at 10.00am.
The Group will announce its Interim Results on 24 August 2017.
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For further information, please contact:
Sportech PLC 020 7268 2400
Ian Penrose, Chief Executive
Mickey Kalifa, Chief Financial Officer
Brunswick Group LLP 020 7404 5959
Mike Smith and Stuart Donnelly
sportech@brunswickgroup.com
Investec Bank PLC 020 7597 4000
Patrick Robb
Henry Reast
Peel Hunt LLP 020 7418 8900
Dan Webster
Adrian Trimmings
George Sellars