Betting technology provider Sportech believes that it is on track to exceed its projected adjusted earnings before interest, tax, depreciation and amortization (EBITDA) for the current financial year, while group revenue is expected to be consistent according to igamingbusiness.com
In a trading update, Sportech said it continued to drive operational efficiencies across all business lines, which in turn means that adjusted EBITDA will be better than expected for the 12 months to December 31, 2019, without sports betting investments.
Sportech said it took positive decisions to restructure the group, exit certain non-profit activities and streamline costs. While this will result in increased expenses for the current year attributable to unusual goods, the company noted that it would also generate long-term returns.
In the meantime, Sportech noted that its focus on capital expenditure projects has been reduced, with this set to significantly reduce costs for 2019 in this area.
In terms of divisional results, Sportech said its insistence on improving any aspect of the business to provide a more fitting operational cost base helped reduce the Venues business ‘ high fixed costs.
It is anticipated that the other business units of Sportech including Racing and Online, Bump 50:50 and Lottery will see net contribution development throughout the year.
Richard McGuire, who in July of this year was named Sportech’s chief executive, said:
“Sportech now has a leadership team in place to develop the company and drive growth and productivity. We have removed the group from a number of historically expensive strategies, delivered an efficient and lower operating cost base, and now we are much more confident in the ability of the group to deliver significant value to our customers and shareholders.