BUSINESS

Sportech revenues double; Fortuna has online to thank

TAGs: Fortuna, Sportech

sportechSportech has seen revenue double in the first six months of 2011 in the first results released since the inauguration of Sportech Racing. According to interim results sent out earlier today, the company’s revenue shot up by 100% to £57.4m. Their profit before tax was also impressive as a loss if £5.9m in 2010 was turned into a modest profit of £3.7m.

Chief executive Ian Penrose stated, “We are pleased with the Group’s performance during the first half of 2011. Having successfully integrated Sportech Racing, we are focused on the continued development of our existing Group activities. The Group has produced a strong improvement in EBITDA performance, generated strong cash flows and reduced its net bank debt by 10% in six months, reflecting the current and longer term growth potential of the business.”

In terms of the separate parts of the business, eGaming saw total revenue drop from £2.5m last year to just £2m. It still managed to run at an operating profit of £0.8m despite a drop in revenue.

Still in Europe and a growth in online betting has meant that Fortuna Entertainment Group managed to record a 19% increase in net profit. This was achieved through an 39.6% increase to €14.6m in gross win from online.

Jiří Bunda from Fortuna commented, ”In the first half of 2011 our earnings continued to grow, primarily supported by a strong performance of online sports betting. While our total volumes of accepted bets were impacted by a lack of attractive sports events, we managed to grow our business in all revenue parameters. Our excellent results follow our chosen strategy of two main distribution channels, where retail shops serve not just as sales points but also provide online betting support.”

Amounts staked also had a lot to do with the growth and the European operator saw €209m staked in the first half of 2011, an increase of 9.1% year-on-year.

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