The Sportech strategy is clearly focused on the core profit generating Divisions of Football Pools and Betting and is well positioned to capitalise on future growth opportunities in the online Betting market and around the exclusive interactive deal with ITV.

Highlights

• Turnover of £254.3m in line with last year (2004: £254.5m) with 3% revenue growth in the Betting business offset by the 15% Football Pools revenue decline.
• Operating profit, pre-restructuring costs, 3% lower at £9.1m (2004: £9.4m). Operating profit of £6.6m (2004: £9.1m).
• Profit before tax and restructuring costs of £5.2m (2004: £6.0m). Profit before tax £2.7m (2004: £5.7m).
• Executive team significantly strengthened with appointment of Ian Penrose as Chief Executive.
• Business strategy focused on two core profit generating Divisions: Betting and Football Pools.
• Cost base significantly reduced across Divisions, delivering annualised employment cost savings of £2.7m.
• Good progress in development and integration of Betting products:
• Launch of betdirectcasino.com and betdirectpoker.com
• Introduction of mobile sports book
• Further strengthening of content on ITV
• Littlewoodspoker.com successfully linked to first mainstream television poker programme (ITV Celebrity Poker)
  
• Commercial negotiations with ITV are underway, aimed at improving the ITVi service and establishing a mutually beneficial financial framework.
• Earnings per share of 0.34p (2004: 0.67p).