Sportech targets US growth after H1 revenue dip 

Sportech has reported a 7% drop cc in H1 revenues to £36.4m, but hailed a bright future thanks to its recent strategic pivot to focus on the US market.

The firm blamed the revenue dip on the timing of set-up sales in the comparative period in 2016, but pointed to its strong cash position and international growth prospects as proof of the company’s health.

“2017 has seen the transformation of the Group continue,” said group CEO Ian Penrose

“We were successful with the £97m VAT legal case in the Supreme Court, we modernised and sold the Football Pools for £83m, repaid over £60m in debt and returned £21m to shareholders with further substantial shareholder returns still to come from the £76m cash balance.

“Following significant investment into our technology and licensing, Sportech has now established a strategic base to grow our business globally through our unique regulated gaming business based in North America together with our expanding presence in Asia. We have transitioned our business away from the UK market which is encountering regulatory headwinds, and await with interest the Supreme Court’s decision in the US on the future of sports betting.

“With our strong balance sheet and cash balances, we have the resources to fund attractive growth opportunities, meet ongoing commitments and deliver substantial returns to shareholders.”

By division, Racing and Digital fell 12% cc to £17.6m while Venues dipped 2% cc to £19m. EBITDA fell 5% to £3.9m.