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Sportech overhauls management in first half

The company has put in place a new management team, with a focus on technology
Sportech overhauls management in first half

Digital betting company Sportech (SPO) overhauled its management team during the first half of its financial year. It appointed a new chairman and chief executive, as well as adding a new chief operating officer and chief commercial officer. A new chief technology officer was also brought in after a review of the business determined that the digital capabilities required significant enhancement. In January it completed the acquisition of Lot.to Systems, and integration of the company’s technology into digital development, sports betting and iLottery is under way.

IC TIP: Hold at 32p

The company struggled to make further headway in the US. Sports betting in neighbouring states took some business away from Sportech’s venues in Connecticut, with sales down 10 per cent. The company is in ongoing discussions with the state of Connecticut and the Native American tribes there to pass legislation that would allow Sportech to offer sports betting in the state. Chief executive Richard McGuire said he’s “hopeful, but not optimistic” that a resolution will be found by the year end. It’s also built a platform for sports betting that it could offer to operators in other states.

Analysts at Peel Hunt expect pre-tax profits of £2.9m during 2019 giving EPS of 1.2p, increasing to £3.8m and 1.6p in 2020.