Sportech posts 41% YoY revenue decrease in 2020
Betting technology firm faces full brunt of Covid-19 as retail handle severely impacted
Sportech has posted a 41% year-on-year (YoY) decrease in revenue for 2020 as Covid-19 restrictions severely impacted the betting technology firm.
Sportech recorded £20m in revenue for the year, down from £33.6m in 2019, as pandemic-based restrictions resulted in a 28% annual decrease in total retail betting handle.
The group also posted a £2.3m EBITDA loss, compared to a £1.6m profit in 2019, while pre-tax losses amounted to £5.2m.
Sportech said it would continue to “reduce the corporate cost base” throughout 2021, which has already seen the sale of its global Tote business to BetMakers and its Bump 50:50 business.
Richard McGuire, Sportech CEO, said: “Despite the challenging global environment, our performance in 2020 was better than initially forecast in March, with Sportech delivering on key performance metrics, namely cash generation from operational activities, effective capex management, and delivery of a more efficient lower operational cost base going forward, resulting in only a modest cash outflow since the outbreak of Covid-19.
“I am encouraged by the resilience shown by the business in facing the challenges of 2020. My gratitude goes to those dedicated professionals who will be transferring to new owners in 2021 and my thoughts remain with the families of those colleagues we lost to this pandemic,” he added.
Peel Hunt analyst Ivor Jones said: “With the current share price largely underpinned by cash, and upside potential in the core business as well as in strategic change, we reiterate our 32p per share target price and upgrade our recommendation to Buy from Hold.”