Sportech Reports £34.6 Million Profit in 2021

Sportechs 2021 income was £22.9 million, with the firm selling off numerous divisions throughout the year, which increased profits to £34.5 million.

All of Sportechs 2021 income, expenditures, and earnings figures, as well as comparative figures for 2020, have been removed from the divested business units and then included in discontinued operations. These include the Global Tote business, which was acquired by Betmakers in June 2021, and the Bump 50:50 business, which Sportech agreed to sell to Canadian Bank Note in February 2021.

Sportech subsequently delisted from the London Stock Exchange and moved to the Alternative Investment Market, after which CEO Richard McGuire and CFO Tom Hearn stepped down from their positions.

As a result, the £22.9 million income figure represents a 32.1% increase on the restated 2020 figure.

Sportech CEO Andrew Lindley stated that while the company is now small for a listed firm, he believes it is the appropriate size for its operations.

“2021 was a year of significant change for the company, and we completed a substantial amount of mergers and acquisitions and corporate action to reduce the size of the company and reduce risk for shareholders,” he said.

Sportech, despite its modest size, is effectively structured and possesses potential for expansion. Its two divisions are appropriately sized for their operations and delivered fresh value growth opportunities for the organization and its investors in 2022.

The wagering enterprise constitutes the majority of Sportech’s income, reaching £19.5 million, a 25.0% rise from the corresponding period in 2020. Sports betting commission earnings were £280,000, and Sportech venue catering income was £2.1 million, a 46.8% increase.

Consequently, the total revenue of the Sportech venue business was £21.9 million, a 28.0% rise. This enterprise operates racetracks and jai alai courts in Connecticut.

Furthermore, Sportech’s digital business revenue was £1 million, exceeding three times the total revenue in 2020.

The business’s cost of goods sold was £11.5 million, resulting in a gross profit of £11.5 million, a 32.4% increase from 2020. Of this, Sportech venues contributed £11 million, and Sportech’s digital business contributed £484,000.

After deducting £276,000 in marketing and distribution expenses, the business’s contribution profit was £11.2 million, a 34.0% increase.

The business’s operating expenses were £15.7 million, but other income was £4.1 million.

Therefore, the business’s operating loss was £402,000, considerably lower than the £11.4 million operating loss in 2020.

Costs associated with financing were £305,000, and income related to financing was £461,000.

This indicates that Sportech’s continuing operations had a pre-tax loss of £246,000, compared to £11 in 2020.

In the past, the firm had incurred a loss of £9 million.

Even though the firm experienced a loss of £438,000 in ongoing operations, which is less than 5% of the £10.9 million loss in 2020, the firm still generated a profit of £35 million after paying £192,000 in taxes. This was primarily due to the sale of divisions, including the global lottery business and Bump 50:50. These divisions sustained a loss of £2 million in 2020.

As a consequence, Sportech’s final profit in 2021 was £34.6 million, in comparison to a loss of £12.8 million in 2020.

Sign up for the iGaming news newsletter.