18 Nov 2010 07:00
Sportech PLC ("Sportech" or "the Group")
Interim Management Statement
Sportech PLC, one of the leading suppliers and operators of pool/tote betting in the world, today announces its Interim Management Statement relating to the period 1 July 2010 to date.
In line with its interim results statement of 26 August 2010, the Board is pleased to report that the Group continues to trade in line with expectations. The Group continues to focus on cash generation and debt reduction.
Key Operational Highlights:
·; Scientific Games Racing ("SGR"): Completion of the acquisition of SGR, now renamed Sportech Racing, on 5 October for a total consideration of £51.4 million, following the receipt of regulatory approvals in the U.S.A (states of Connecticut, New Jersey and Maine) and the Netherlands.
·; Business Integration: Integration of SGR, now renamed Sportech Racing, is proceeding well and to plan, as we look to create a unique and integrated gaming and technology platform with global reach. During the first six weeks of ownership, the senior management team from the enlarged Group has been highly engaged, and has displayed positive energy and drive to build upon the business opportunities facing Sportech. We also continue to work with Playtech as we look to realise the significant potential of Sportech's e-Gaming operations in 2011.
·; The Football Pools: The Football Pools has been launched on Ladbrokes.com, the online platform of a world leader in global gaming and betting, giving our Football Pools games exposure to Ladbrokes significant online customer base. The Group has also signed an agreement with Sol Mutuel, a leading global co-mingling company for pari-mutuel gaming, for Football Pools distribution across the Caribbean and South America from Q2 2011 onwards.
·; Sportech Racing: We have opened two additional Off Track Betting (OTB) locations as part of our Venue Management business in Connecticut, U.S.A, taking the total number of outlets up to 14 (license permits 18). Both the Manchester and New London venues in Connecticut are partnerships with existing sports bar businesses. The Group has also signed an agreement in Chile for the provision of pari-mutuel wagering systems, terminals, interactive wagering platforms and services at the Hipodromo Chile and Club Hipico de Santiago. The agreement spans racetracks, phone betting, teletrack centres and 201 OTB locations.
·; Littlewoods Licensing Agreement: The Group secured the extension of its licensing agreement with Shop Direct Group, one of the UK's largest home shopping companies and owners of the Littlewoods brand, for the continued use of the Littlewoods brand for online gaming. The licensing agreement, which is for 5 years with an annual break clause after an initial 18 month period, will see Sportech continue to operate and market the established Littlewoods brand name across its existing e-Gaming websites. In a separate arrangement, Sportech and Shop Direct Group agreed to collaborate on an online bingo offering.
·; India Joint Venture: We continue to make progress with SportsHero.com, which now has over 100,000 registered customers to date since its launch six months ago. The Group is continuing to monitor regulatory developments in India, and particularly in the state of Sikkim.
Outlook:
Ian Penrose, the Chief Executive of Sportech, commented:
"Sportech has made significant progress in this period. We have continued to extend the distribution of our core products, and the completion of our acquisition of SGR following an extensive regulatory process, gives the Group the platform for further developing our potential in the emerging global regulated markets."
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Contacts:
For further information, please contact:
Sportech PLC 0207 268 2400
Ian R Penrose, Chief Executive
Steve Cunliffe, Finance Director
Pelham Bell Pottinger 0207 861 3232
David Rydell / Rosanne Perry
About Sportech PLC
Sportech is one of the leading suppliers and operators of pools/tote betting in the world. Every year we process over $13 billion in bets and we have a presence in 30 countries. Our businesses include:
·; The Football Pools: The world's oldest football gaming company, founded in 1923. The Football Pools has paid out over £10 billion in prize money and donated over £1.1 billion to good causes in Sport and the arts. The Football Pools is an official licensee of The English Premier League and Football Leagues, and official partner of the Scottish Premier League and Football Leagues. Over 500,000 customers play The Football Pools every week and we operate across a number of channels including postal, telephone, collectors, retail and online.
·; Sportech Racing: Comprising the former Scientific Games Racing and Autotote Enterprises, Sportech Racing is recognised within the industry as the leading provider of pools/tote wagering services to the horseracing industry. We provide a wide range of wagering technology solutions to racetracks, off-track betting networks (OTBs), internet wagering operators and casinos. Our customers are some of the biggest racing organisations in North America, Europe, Latin America, the Caribbean and Asia.
As part of our Sportech Venues business, formerly Autotote Enterprises, we operate 14 Off Track Betting (OTB) venues (licenses allows 18) and a telebet business, under an exclusive license in perpetuity to operate pari-mutuel wagering on horseracing in the state of Connecticut U.S.A. We also operate OTB venues, Point of Sale facilities and online wagering, under an exclusive license to operate pari-mutuel wagering on horseracing in the Netherlands until 2013.
·; Sportech e-Gaming: As the trusted name in online gaming, Sportech operates some of the most established brands in the industry including Littlewoods, Vernons and Game On. We have a wide product range which includes online bingo, casino, poker, instant win games and lotteries.
For more information on Sportech PLC, please visit www.sportechplc.com