London-listed sports betting technology provider Sportech said Monday that it expects full year revenue to be in line with management expectations following a number of decisive actions.
This year has seen Sportech management restructure the group, exit certain non-profitable activities and streamline costs in a bid to deliver a more appropriate operational cost base to help offset the high fixed costs of its Venues business, which the group is addressing through a variety of initiatives.
Sportech’s Racing and Digital, Bump 50:50 and Lottery business units are all expected to report growth in 2019 versus a year ago.
“Sportech now has a management team in place to transform the business to drive growth and efficiencies,” said Sportech CEO Richard McGuire. “We have extricated the group from a number of historically expensive strategies, delivered an efficient and lower operational cost base, and we are now much more confident in the group's ability to deliver significant value to our clients and shareholders.”
The company added that these operational efficiencies should deliver higher than expected 2019 adjusted EBITDA, excluding sports betting investments.
Shares in Sportech plc (LSE:SPO) were trading up 0.52 per cent at 32.97 pence per share in London Monday morning following the announcement.