International betting technology business Sportech’s streamlining drive has helped projected full-year EBITDA – excluding sports betting investments – move above board expectations, with group revenue in line with board expectations.
Sportech said that “positive decisions have been taken to restructure the group, exit certain non-profitable activities and streamline costs.”
This will impact the exceptional items cost line in FY 2019, as previously stated, but deliver long-term returns. In addition, the group has determinedly focused on reducing low-return capex projects, and as such FY 2019 capex is expected to reduce significantly versus FY 2018.
“The board’s continued emphasis on challenging every aspect of the business to deliver a more appropriate operational cost base has helped offset the high fixed costs of the Venues business, which the group is addressing with a variety of initiatives,” Sportech stated.
“Meanwhile, the group’s other business units, including racing and digital, Bump 50:50 and lottery, are anticipated to demonstrate net contribution growth in FY 2019.”
Sportech will announce its FY 2019 final results on Thursday, March 19, 2020.
