Sportech has announced revenue for the first half of 2018 rose just 1.2 percent, from $40.2m in 2017 to $40.7m during the first six months of this year.
The London-based online gambling operator stated that though gross profit increased, the growth of less than one percent from $29.3m to $29.5m over the same period was in part due to $631,748 worth of costs related to the firm’s newly founded sports betting division.
“We continue to assess further operational efficiencies to maintain profit levels in the business,” said CEO Andrew Gaughan.
“We also believe the market outside of North America is moving to more service-based contracts versus one-time sales contracts and are positioning our teams accordingly.”
Though the operator will reposition its global sales teams as part of its international expansion, Sportech noted the firm is still concentrated on the burgeoning US sports betting market.
Highlighting the market focus, Gaughan added Sportech is “very well positioned to offer a competitive integrated sports and race betting solution in other US states.”
Sportech signed a partnership with trading and risk management provider Sportradar in May, supplying the Swiss company’s sports data services to its network of 90 licensed US operators.
Since June, Sportech has also operated as an independent sports betting provider in Connecticut, through its Bobby V’s restaurant and sports bar, with overall market growth predicted to generate “further improvements, particularly in the 2019 financial year.”
“We believe that we will have a strong direct-to-consumer sports betting offering in Connecticut,” said Gaughan. “We are very well positioned to offer our racing and digital customers a competitive integrated sports and race betting solution.”
“Sports betting costs for 2018 should be in the range of $1.4m to £1.6m. Given the legislative windows of various states we would anticipate our sports betting revenues to begin in the second half of 2019.”
Further noting the movement outside North America from one-time sales contracts to long-term service-based contracts, Gaughan added the shift “will mean lower one-time sales revenues, but an increased and more consistent service revenue base.”