25 Nov 2019 07:00
25 November 2019
SPORTECH PLC
('Sportech' or the 'Group')
FY 2019 Trading Update
Sportech, the international betting technology business, is pleased to provide a trading update in respect of the current financial year ending 31 December 2019 ('FY 2019').
The Board is pleased to announce that the Group continues to drive operational efficiencies through all business lines and anticipates that FY 2019 Group adjusted EBITDA, excluding Sports Betting investments, will be ahead of the Board's expectations whilst Group revenue will be in line with the Board's expectations.
Positive decisions have been taken to restructure the Group, exit certain non-profitable activities and streamline costs. This will impact the exceptional items cost line in FY 2019, as stated in the HY 2019 results, but deliver long term returns. In addition, the Group has determinedly focused on reducing low-return capex projects, and as such FY 2019 capex is expected to reduce significantly versus FY 2018.
The Board's continued emphasis on challenging every aspect of the business to deliver a more appropriate operational cost base has helped offset the high fixed costs of the Venues business, which the Group is addressing with a variety of initiatives. Meanwhile, the Group's other business units, including Racing and Digital, Bump 50:50 and Lottery, are anticipated to demonstrate net contribution growth in FY 2019.
The Group will be announcing its FY 2019 Final Results on Thursday, 19 March 2020.
Richard McGuire, Chief Executive Officer of Sportech, said: "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."
A copy of this announcement is also available on the Group's website at www.sportechplc.com
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Contacts:
Sportech PLC | Tel: +44 (0) 117 902 9000 |
Richard McGuire, Chief Executive Officer Thomas Hearne, Chief Financial Officer | |
Peel Hunt | Tel: +44 (0) 20 7418 8900 |
(Corporate Broker to Sportech) George Sellar / Andrew Clark | |
Buchanan | Tel: +44 (0) 20 7466 5000 |
(Financial PR adviser to Sportech) Henry Harrison-Topham / Mark Court / Jamie Hooper | sportech@buchanan.uk.com |
The information contained within this announcement is deemed by the Group to constitute inside information as stipulated under the Market Abuse Regulation.
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.