7 Nov 2018 07:00
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR PART, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION
This announcement contains inside information
For immediate release | 7 November 2018 |
SPORTECH PLC
('Sportech' or the 'Group')
Trading Update
Sportech, the international betting technology business, today issues a trading update in respect of trading in the current financial year ending 31 December 2018.
Financial Outlook
Following the reduction in Group size as a result of the sale of assets and subsequent shareholder distributions in 2017, key sales contracts now have a more significant impact on Group performance indicators. The Group now anticipates that certain expected sales contracts are unlikely to be secured in 2018 and therefore forecast Adjusted EBITDA, excluding Sports Betting investments, for 2018 will likely be 5% to 10% lower than the current market expectation of £8.5 million. The latest forecast, however, would represent year on year Adjusted EBITDA growth of between 14% to 20%.
Sports Betting
The repeal of Professional and Amateur Sports Protection Act of 1992, (PASPA), in the United States in May confirmed the Group's focus on expanding initiatives within the US. The Group continues to work proactively with existing B2B clients across the US and with the state of Connecticut to extend the Group's existing pari-mutuel licence to conduct sports betting as a licensed "direct to consumer" operator. The decision by the State is anticipated to be in 2019, when the legislative session resumes.
Andrew Gaughan, Chief Executive Officer of Sportech, said: "Whilst we are disappointed not to have secured some international sales contracts by the year end, we continue to focus on signing these contracts. We are working proactively with Connecticut and other states in the US to secure the rights to conduct sports betting as a licensed operator and we expect that sports betting revenues will commence in the second half of 2019."
Publication on website
A copy of this announcement is also available on the Group's website at www.sportechplc.com.
- Ends -
Contacts:
Sportech PLC | Tel: +44 (0) 20 7268 2400 |
Andrew Gaughan, Chief Executive Officer Thomas Hearne, Chief Financial Officer | |
Peel Hunt | Tel: +44 (0) 20 7418 8900 |
(Corporate Broker to Sportech) Dan Webster / George Sellar | |
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.