Sportech enjoys successful H1 as divestments help ensure profit

Share on facebook
Share on google
Share on twitter
Share on linkedin

When compared to stated results from 2020, the revenue rose by 59.5%.

A majority of the revenue was generated by venues, which brought in £11.5m. This was an increase of 69.5% compared to H1 2020. Lotteries made up the remaining £1.9m, a number that rose by 75.0%.

No figures were provided for corporate costs, sports betting investment or exchange rate impact.

However, Sportech’s cost of sales totalled £6.3m, which left gross profit at £7.0m. This was an increase of 77.3% year-on-year.

Marketing and distribution costs, at £227,000, brought the total down further to £6.8m, but the business also made £2.5m in other income.

However, operating costs of £8.2m left the operating profit at £1.1m, an increase of £9.7m compared to the £8.3m loss it made in H1 2020.

Most of this was made up of staff costs, at £3.3m. Professional fees and licenses came to £1.4m, while property was the third-highest cost at £1.4m. The remaining costs were made up of IT, travel and entertainment, bank transactions and other expenses.

Finance income at £230,000 offset the finance costs, which were £154,000, causing the total profit before taxation to be £1.2m.

Taxation – coming to £608,000 – brought the total profit from continuing operations in H1 to £632,000, a yearly increase of £9.5m compared to 2020’s £8.9m loss.

However, Sportech also noted its profit after tax for discontinued operations, which was £23.3m. This brought the total net profit for the period to £23.9m, an increase of £34.6m year-on-year.

Discontinued operations refers to the sale of Sportech’s Global Tote business to BetMakers, in a deal worth £30.9m, which took place after 99.8% of Sportech stakeholders voted in favor of the deal. It also refers to the acquisition of Bump 50:50 by currency business Canadian Banknote for £5.7m

The Global Tote acquisition generated £18.6m in net cash disposed of and disposal costs, while Bump 50:50 made up the remaining £4.7m.

This was also the first set of H1 results since Sportech’s rejection of a proposed general takeover by Standard General, in which the business was valued at £53.8m.

Last month, Sportech’s chief executive Richard McGuire and chief financial officer Tom Hearne announced their intention to depart in a series of planned reductions in scale. Both departures are effective today (9 September).

Sportech said the changes come after a complete evaluation of the group’s business lines, as well as a reduction in the operational scale following the disposal of the Global Tote business and Bump 50:50.

Leave a Reply

About Us

Intelligent Profiling develop cutting edge behavioural analysis platforms utilising in-session messaging, gamification, player journey engine and promotions management.

Recent Posts