Sportech PLC ("Sportech", or "the Group")
Interim Management Statement
Sportech PLC, one of the world's leading operators and suppliers of pools and tote gaming, today announces its Interim Management Statement relating to the period from 1 July 2011 to date.
Financial Summary
The Board is pleased to report that the Group is trading in line with expectations for the full year and continues to generate strong cash flows in the second half of the year.
Key Operational Highlights
Sportech Racing
The B2B focus for the second half of the year has been on the delivery of tote systems and/or terminals for a number of existing, and new customers. We are pleased to report that the 550 terminal order to Fintoto, Finland's sports betting operator, has been delivered and installed and that the first installment of our 1,240 terminal order to Tabcorp, Australia's leading wagering and gaming entertainment business, has been shipped. We have delivered and installed a tote system to a customer in Argentina, which is due to go live this week, and are on track to deliver a new system to a Chilean customer by the end of the year.
Our interactive product and services contract to racetracks in Illinois went live on 1 August 2011 and we expect to launch a similar service in Puerto Rico by Q1 of 2012. We have a pipeline of opportunities in this area.
The initial refurbishment program to improve Sportech Racing's retail betting venues in Connecticut, completed earlier this year, has had a positive impact on results. Handle (bets placed) is 0.8% up (2.8% down on a like for like basis) in the seven months since the program was completed, compared to an industry average in the same period of 7.1% down. We have commenced a second program of capital spend within the venues as we seek to build on the solid foundations that have been established over the last few months.
Football Pools
The Group continues to invest in driving further efficiencies from operational activities, extending the distribution network and focusing on effective customer acquisition. As noted in our interim results statement, the Group has extended the opportunity to play the Classic Pools game with an increase by ten competitions to 83 in 2011. Initial uptake of these additional games has been encouraging in the core and loyal direct debit player base and provides the Group with a solid revenue base for 2012.
e-Gaming
As previously announced, 2011 is a year of transition for our e-Gaming operations as we transfer gaming software for many of our products to that provided by Playtech. In this period, we have launched Vernons.com and LittlewoodsGaming.com on the Playtech platform and we commence the migration of customers to our new platforms over the next two weeks.
India Joint Venture
As a consequence of emerging regulation, our primary focus in the period has been working with our joint venture partner, Playwin, to extend their activities into the provision of pool games, initially focused on cricket and football. The technical and initial product development work is almost complete, and we await the formal award of a Licence (provisional Licence already approved) to Playwin's parent company, the Essel Group, in order for the joint venture to supply pools products online to the Licence holder.
VAT Claim
The Group's advisors continue to work on the claim and as previously advised we now anticipate a Tribunal date at the First Tier Tax Tribunal to be set for the first half of 2012.
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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
