Betting technology group Sportech has stated that the business environment remains “challenging” even with sport returning to the schedules sooner than expected.
In a trading update, the company said that its cash reserves would be run down to £8.9m by the end of the current month, representing a slight improvement on the £7.5m it had predicted had sporting events not come back until early July.
However, revenues for Q2 2020 were impacted “in all areas”, the company stressed, albeit at a time when new agreements have recently been signed with the UK Tote Group, Ascot Racecourse, the Hong Kong Jockey Club and the Macau Horse Racing Company.
New deals or extensions were also penned internationally with TVG (New Jersey), Emerald Downs, Monmouth Park and Borgata Casino.
Sportech also stated that early results from its new online progressive jackpot initiatives and growth from within the not-for-profit charitable sector were “encouraging”, while the group achieved a significant reduction in operational costs in the first half of 2020 to partially offset “severe” revenue declines due to the global Covid-19 pandemic.
“This remains a challenging environment for the group and despite core divisions reopening, there remains uncertainty to when all businesses will return to full operational capacity,” the company stated.
“Management will continue to focus on delivering a compelling international product to our clients, resulting in additional long term contracts and ultimately providing core long-term growth beyond the prevailing global situation.”
Richard McGuire, CEO of Sportech, said: “Challenges obviously remain, especially as our business resumption timetable is governed by external factors. However, as a group we have no debt, a stable balance sheet and we intend to emerge from this pandemic operationally and technologically stronger.”
