Guided by the new leadership duo of Andrew Gaughan (CEO) and Thomas Hearne (CFO), London-listed racing and wagering systems provider Sportech Plc accelerates its US ambitions.
Publishing its H1 2018 interim results, Sportech governance has undertaken a series of corporate adjustments to strengthen its US muscle post-PASPA.
These include securing a comprehensive sports betting platform arrangement with sports data-firm Sportradar across its entire US portfolio. Whilst further expanding in-stadia wagering systems Bump 50:50 agreements with US sports teams, and offloading its Dutch racing asset Racing BV for £2.8 million.
Despite the frenzied US activity, Sportech maintains its group revenues of £31 million combined with £23 million gross profits, matching 2017’s top-line output.
However, the London enterprises numerous US-centric alignments have impacted corporate ‘adjusted EBITDA’ to 2.8 million (H12017: £3.4 million), with Sportech governance declaring period operating losses of £600,000.
In its interim update, Sportech highlights the firm’s strengthened cash reserve of £12.5 million with no corporate debt obligations.
Based in Toronto, Sportech’s new leadership team of Gaughan and Hearne are developing a new growth strategy, to rapidly expand the firm’s North American commercial pipeline
Andrew Gaughan, chief executive officer of Sportech PLC, said: “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.
“Soon after the decision was announced, we signed an agreement with Sportradar for sports betting data, trading and risk management services, and technology platforms.
“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.
“We also believe the market outside of North America is moving to more service-based contracts, versus one-time sales contracts, and are positioning our teams accordingly.
“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.”