Sportech has reported increased gross profit of 11 percent for 2022 to £14.2m, with executive chairman Richard McGuire noting investment in US sports betting “has started to deliver results.”
The company also reported stable revenue growth of two percent to £26m in its latest trading update for the year ending December 31.
And adjusted EBITDA returned to positive at £1.6m, compared to a £1.8m loss in 2021.
As for sports betting, Sportech said 2023 Q1 retail hold was 39 percent up against Q1 last year.
The increase follows Sportech agreeing to become a distributor for the Connecticut Lottery Corporation’s sports betting product at the majority of venues across the state in August 2021.
The gross retail sports betting handle during the year through Sportech Venues was $98.7m. Sportech has also recently invested in two online pool betting sites in the US, which both delivered revenue growth in 2022 – and Sportech said additional opportunities for these sites are under review.
McGuire said: “2022 was a year of consolidation and progress and the team are excited about the potential in 2023. Our investment in the growth of US sports betting has started to deliver results.
“2022 Operational leverage was impressive, as modest revenue gains translated to impressive gross profit gains and a return to positive EBITDA during the year. We are reviewing various strategic options for the current business lines while evaluating online betting opportunities that leverage our brand, people and expertise.”
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