Sportech revises 2018 earnings following ‘US strategic shrink’
By : Adminik -
Having undertaken a group restructure to focus its future operations on US long-term growth opportunities, London-listed wagering and racing systems supplier Sportech Plc has moved to adjust its full-year 2018 forecasts.
Updating the market, Sportech governance anticipates that group full-year 2018 EBITDA will be between 5-10% lower than its previous market expectation of £8.5 million.
Sportech governance details that corporate adjustments focusing on US growth prospects have led to a ‘reduction in group size’. Furthermore, the company details that certain anticipated sales contracts will not be materialised in 2018.
Outlining future prospects, Sportech details strong progress on its US agenda, with Connecticut State renewing its existing pari-mutuel contract to conduct sports betting as a licensed “direct to consumer” operator.
Commenting on the update, Andrew Gaughan, Chief Executive Officer of Sportech, said: “Whilst we are disappointed not to have secured some international sales contracts by the year-end, we continue to focus on signing these contracts.
“We are working proactively with Connecticut and other states in the US to secure the rights to conduct sports betting as a licensed operator and we expect that sports betting revenues will commence in the second half of 2019.”
Sportech governance will publish its Q3 trading update on Friday 9 November.