Trading Statement

RNS Number : 7743K

Sportech PLC

21 July 2011

 



Sportech PLC ("Sportech", "the Company" or "the Group")

Trading Update

Sportech PLC, one of the world's leading operators and suppliers of pools and tote gaming, announces a trading update for the six months ended 30 June 2011 ("the period"), ahead of its Interim Results, which will be announced on 25 August 2011.

Financial Summary

The Group's EBITDA performance remains in line with consensus market expectations* for the year as a whole which, reflecting the acquisition of Sportech Racing in October 2010, are over 30% up on the previous financial year.

The Group has generated strong cash in the period and the Board continues to focus on debt reduction whilst investing in appropriate business development opportunities. During the period, net bank debt has been reduced by a further £7.0m (10%) to approximately £65.2m. The Board anticipates a continuing reduction in net debt throughout the second half of the year.

Operational Highlights

Having completed the integration of Sportech Racing, the team is now fully focused on developing the business of our existing group activities.

Good progress has been made with the expansion of our B2B distribution into markets outside of North America. System and terminal sale agreements to our customers in Argentina and Chile are both on schedule for delivery in the second half. We have also secured a 550 unit terminal sale to Fintoto, Finland's sports betting operator, for delivery later this year.

Our interactive product and services contract to race tracks in Illinois goes live on 1 August 2011. We expect to announce further contracts in this area shortly.

The $1.5m initial refurbishment program to improve Sportech Racing's retail betting venues in Connecticut is now complete. There are already encouraging early results with improvements in handle (bets placed) throughout May and June compared to both the prior year and overall market trends.

The Group continues to invest in modernising its Football Pools business and extending its distribution network, whilst focusing on costs and cost effective customer acquisition. In addition to those already announced, we are pleased to have secured a further distribution agreement with Centrebet, a major Australian bookmaker, which will go live prior to the start of the new football season  next month.

As previously announced, the 2011 full year is one of transition for our e-Gaming operations as we transfer our gaming software for our many products to that provided by Playtech, the world's leading online gaming technology business. The business continues to trade in line with expectations and migration is fully planned and on schedule to be completed through the remainder of this year.

*As at 20 July 2011, the Company believes consensus market expectations is £ 26.0m EBITDA and net debt of £64.3m for the year ending 31 December 2011.

Ian Penrose, Chief Executive of Sportech PLC commented:

"We are pleased with the Company's first half performance as we strengthen Sportech's position as one of the world's leading suppliers and operators of pools and tote gaming. The Group has produced a strong improvement in EBITDA performance and generated strong cash flow, which we believe reflects the current and longer term growth potential of the business."

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Contacts:

For further information, please contact:

Sportech PLC                                                                                             020 7268 2400

Ian R Penrose, Chief Executive

Steve Cunliffe, Finance Director

Pelham Bell Pottinger                                                                                020 7861 3232                             

David Rydell / Emma Kent / Rosanne Perry

About Sportech PLC

Sportech is one of the world's leading pools and tote gaming organisations focusing on highly regulated markets worldwide. Sportech provides pari-mutuel betting on football, horseracing and greyhounds processing over £8.5 billion in bets annually with a presence in 30 countries. Sportech also has a developing e-Gaming business.

 

For more information on Sportech PLC, please visit www.sportechplc.com

 

 

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