Interactive
UK – Sportech cites reliance on sporting events for 38 per cent revenue fall
By Lewis - 11 September 2020
Sportech has announced its interim results for the first half of 2020, citing COVID-19 as having a material impact on performance due to the Group’s reliance on sporting events to generate revenue.
Sportech posted pre-tax losses of £10.7m compared to £2.5m in 2019, with revenue down 38 per cent year-on-year to £20.2m.
The group reported adjusted Ebitda in its Sportech Racing and Digital division down from £3.7m to £1.4m and revenue falling 27 per cent to £13m. Revenue in Sportech’s venues division was down 52 per cent to £7.2m.
Richard McGuire, Chief Executive Officer of Sportech PLC, said: “2019 marked a year of operational improvement and a serious motivation to strengthen digital capabilities. 2020 began well, however, as a business primarily dependent on sporting events taking place, the impact of COVID-19 clearly affected performance.
“The Group enhanced and diversified its client base further through record new and extended client agreements during the period, providing a realistic prospect for incremental growth in 2021. The Board’s focus remains absolute in creating tangible long-term value for shareholders”.
The group has stated that during the rest of the financial year, profitability and cash generation will continue to be its key metrics. Sportech says it is difficult to provide meaningful guidance on the future outlook given uncertainty around the timing of when sporting events will return in full and the potential impact of further lockdowns.
