Sportech to hit EBITDA projections in 2021 after downsizing
The announcement was made as part of a pre-close update regarding the company’s full year ended 31 December 2021.
Sportech downscaled by divesting a number of key assets throughout the year, naming its sales of its Global Tote business to BetMakers and raffle technology supplier Bump 50:50 to Banknote as particularly important.
This downsizing led to Sportech removing its shares from the London Stock Exchange and moving to the Alternative Investment Market, after which CEO Richard McGuire and chief financial officer Tom Hearne stepped down from their roles.
Sportech emphasised that its venue business was a “key component” of its affairs in 2021. It generated a majority of the revenue in its 2021 half year results, at £11.5m.
The venue business is based in Connecticut, comprising of Sportech’s MyWinners.com wagering platform, 11 Winners venues and two sports bars.
In the update Sportech stated that not receiving a sports betting licence in Connecticut was “a disappointment”, but that its deal with the Connecticut Lottery Company meant that it could still conduct sports betting in the state.
Sportech added that its capital preservation and net cash position were crucial throughout 2021, leading to a year-end cash total of £21.7m
The company plans to announce its full year 2021 results on 31 March.
Looking forward to 2022, Sportech predicts a rise in revenue due to Covid-19 recovery and higher attendance for sports betting at venues.
“Sportech has changed significantly over the course of a busy year and a period of consolidation of the remaining operations and reshaping PLC costs is paramount in 2022 to provide a platform for the future activities,” said Andrew Lindley, CEO of Sportech. “The full recovery from Covid-19 and introduction of sports began to impact the venues positively in December 2021 and, subject to some mild impact on staffing and expected footfall in January due to the surge of the Omicron variant in the US, the outlook for 2022 and beyond is very positive.
“We will be discussing the shape of the future business with key shareholders to ensure alignment with the board on objectives and direction for the divisions and group.”
Last month the divestments continued with Inspired Entertainment’s acquisition of Sportech’s lottery technology division for $12.5m.