Sportech losses widen as revenue and margins contract

22nd Aug 2018 09:25

(Sharecast News) - Sportech saw losses widen across its first trading half as its margins shrank and its revenues slipped.Pre-tax losses for the six months leading to 30 June widened by 88% to £602,000, while on an adjusted basis, Sportech swung from a £900,000 profit from continuing operations to a loss of £200,000.EBITDA meanwhile slid 18% to £3.27m.Sportech witnessed revenue fall 5.7% to £31.6m, although on a continuing operations and constant currency basis it edged 1.3% higher.The betting technology business, which launched its first US sports bar, Bobby V's, saw slower than originally forecast growth at the site, but remained confident that its "highly-experienced" team could deliver a "beneficial impact as we enter the 2019 financial year".Sportech also concluded the sale of its Dutch unit Sportech BV during the half, realising €2.8m as a result.Sportech's chief executive, Andrew Gaughan, noted that the company expects to see lower one-time sales revenues as a result of a market shift to long-term service-based contracts.As of 0920 BST, Sportech shares had slipped 3.77% to 66.21p.