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Sportech losses deepen as revenue slips

Wednesday, 22nd August 2018
Betting technology company Sportech said its first-half losses deepened as a new sports bar in the US didn't perform as well as expected and margins remained under pressure.

Pre-tax losses for the six months through June amounted to £602k, compared to a £320k loss a year earlier.

Revenue fell 5.7% to £31.6m, though on a continuing operations and constant currency basis it edged 1.3% higher.

On an adjusted basis, from continuing operations, the company swung to a £0.2m loss, compared to a £0.9m profit on-year.

'The May 2018 US Supreme Court decision that effectively permitted US states to enact legislation to license and regulate sports betting was very exciting for Sportech,' chief executive Andrew Gaughan said.

'In Connecticut, we believe that we will have a strong direct-to-consumer sports betting offering for our brick-and-mortar and web/mobile betting services.'

'We also believe that we are very well positioned to offer a competitive integrated sports and race betting solution in other US states.'

The recently company concluded a previously announced sale of Dutch unit Sportech BV, realising €2.8m (£2.5m). 'Our Racing and Digital business maintained consistent levels of service revenues for H1 2018 versus the prior year.'

'We continue to assess further operational efficiencies to maintain profit levels in the business.'

'Our Stamford, Connecticut Bobby V's Restaurant & Sports Bar has begun to grow both in terms of handle and food and beverage sales.'

'Growth is slower than originally forecast, but we expect our new highly-experienced Food and Beverage and Group Sales Managers to deliver a beneficial impact as we enter the 2019 financial year.'

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