Sportech revenues up as online arm strengthens
Operator plans to add mobile casino offering before end of 2012 " North American business continues to grow.
Pools and tote betting operator Sportech has experienced a minor rise in sales in the first half of this year, as increased online investment continues to bear fruit, the company has announced during its interim results this morning.
The Liverpool-based business saw overall revenues rise to £57.7m for the six months to 30 June 2012 from £57.4m in the same period last year, while earnings before interest, taxes, depreciation, and amortisation (EBITDA) increased to £12.6m from £12.4m.
Following 12 months of transition, Sportech’s egaming business performed strongly in the first half of 2012, with all products other than bingo migrated to Playtech’s platform, and all of its poker and casino sites moved and rebranded under the Vernons name following the cessation of its rights to use Littlewoods in June.
First-time depositors on the operator’s casino and poker products increased by 300% to 6,000 during the first half of the year, Sportech said, leading to gross win revenues rising by 30% to £2.6m from £2m in 2011. The operator also revealed plans to launch a mobile casino product before the end of 2012, although further details were not released.
Increased marketing spend to promote the new offering, however saw online gaming EBITDA fall slightly to £0.7m from £0.9m in the first half 2011, with the company expecting “good growth” in the division in the second half of 2012 and beyond, it said in a statement.
The increased investment follows last month’s news that Sportech secured a multi-bank structure agreement to allow it to invest £75m in expanding the business in the next three years.
Sportech has also signed a distribution agreement with France-Pari, one of France’s oldest licensed betting operators, in order to introduce a number of its online Football Pools products to French players before the end of the financial year. Its football pools business experienced an increase in weekly spend per customer within direct channel equivalent to 15% year-on-year for the six months to 30 June 2012.
The operator’s US subsidiary Sportech Racing “ formerly Scientific Games Racing “ continues to make good progress, it added, having penned extended tote contracts with California Racing and Betfair-owned TVG. More than 30% of the company’s overall profits are generated from its North American arm.
In May Sportech group chairman Roger Withers announced that Sportech Racing saw betting turnover rise 4.5% year-on-year, with record takings of $4m for the Kentucky Derby, up 11% on 2011.
Chief executive Ian Penrose (pictured) said: “Following a period of integration and operational improvements, we are pleased to have secured larger and improved banking arrangements that will facilitate business development and growth initiatives in the near future.
“Management has invested a significant amount of time in our acquired North American gaming business. As a result, more than 30% of our profits now come from our North American business, and with the emerging regulatory environment and our unique strategic positioning we expect the region to become an increasingly important area for Sportech.
“Despite the challenging global economic conditions, trading remains in line with management expectations for the full year and we look forward to the future with confidence.”