Sportech 2025 Interim Summary
17th September 2025
Sportech Ltd
(“Sportech” or the “Group” or the “Company”)
Interim Results
Sportech, a US-focused entertainment and betting business, is pleased to present its interim results for the seven months ended 31 July 2025 (“2025 YTD” or the “period”). The following statement highlights key financial metrics compared to the prior year on both a constant currency and restated reported currency basis for the period.
Summary
The Company recorded revenue of £12.5 million during the 2025 period, 3.1% below the comparable 2024 period. Gross profit of £6.9 million, was down £0.2m from £7.1 million, maintaining a robust 55% gross profit margin. Contribution remained relatively stable at £6.7 million (2024: £6.9m), demonstrating operational resilience.
A key highlight is the significant improvement in Adjusted EBITDA, which rose to £0.9 million from £0.7 million in 2024 YTD (constant currency), driven by operational efficiencies, growth in sports betting commissions in Connecticut, and reduced corporate costs. The Adjusted Loss Before Tax narrowed to £0.4 million from £0.6 million, reflecting better cost management and operational performance. No shareholder distributions were made in 2025 YTD, compared to £3.4 million in the prior year, following the sale and leaseback of certain property assets.
Sportech continues to prioritize delivering shareholder value through its focus on expanded gaming in the US and specifically enhancing digital wagering opportunities, with a leaner cost structure. The Board remains confident in achieving full-year forecasts and driving sustainable growth.
| £m’s | 2025 YTD |
Constant Currency 2024 YTD |
Restated
Reported Currency 2024 YTD |
|
| Revenue | 12.5 | 12.9 | 13.1 | |
| Gross Profit | 6.9 | 7.1 | 7.3 | |
| Contribution1 | 6.7 | 6.9 | 7.1 | |
| Adjusted EBITDA2 | 0.9 | 0.7 | 0.7 | |
| Adjusted loss before tax3 | (0.4) | (0.6) | (0.7) | |
| Distributions to shareholders | 0.0 | 3.4 | 3.4 |
- Contribution is defined as gross profit, less marketing and distribution costs.
- Adjusted EBITDA is earnings from continuing operations before interest, taxation, depreciation and amortisation, share option charges, impairments and separately disclosed items.
- Adjusted loss is the aggregate of Adjusted EBITDA, share option charges, depreciation, amortisation (excluding amortisation of acquired intangibles) and certain finance charges.
As the Group moves through the rest of the financial year, the corporate focus remains on delivering positive shareholder returns, operationally executing the delivery of enhanced digital platforms to key locations and escalating the Group’s digital wagering opportunities across the US and internationally.
The business transformation continues with the following objectives:
- Utilise corporate and team reputation to deliver further partnership opportunities
- Rebrand retail hubs and expand digital platform capabilities
- Execute market expansion into high growth opportunities beyond Connecticut
- Evaluate and execute material corporate opportunities, delivering tangible investor returns.
For further information, please contact:
Sportech Ltd
Richard McGuire, Executive Chairman
Operational Review: Sportech Venues
Sportech Venues, the cornerstone of Sportech Ltd.’s operations, manages nine premier gaming venues in Connecticut, operating under an exclusive, perpetual licence for retail, online, and telephone betting on horse racing, greyhound racing, and jai alai. Since 2021, the Group has expanded its offerings to include sports betting, enabled through a strategic partnership with the Connecticut Lottery Corporation (CLC) and their sports betting provider, Fanatics Sportsbook. This diversification has strengthened our position in the rapidly growing U.S. wagering market.
Performance Overview
The seven months ended 30 July 2025 (“2025 YTD”) presented initial challenges, particularly in February, when severe weather significantly reduced customer footfall and limited wagering events. As a result, food and beverage (F&B) and pari-mutuel wagering revenues fell markedly compared to the prior year. However, the business has demonstrated significant resilience since March, delivering above-forecast revenues in the core summer months, bolstered by a strong pari-mutuel performance. During the U.S. Triple Crown season, starting in May, Sportech handled $10.76 million in wagers in Connecticut. By the end of July 2025, total wagering handle across our nine Off-Track Betting (OTB) locations and the MyWinners.com digital platform reached an impressive $52.49 million.
Sports betting continues to be a key growth driver. Revenue from sports betting commissions grew by 17.6% during the period, reflecting growing demand and our successful collaboration with CLC and Fanatics Sportsbook. Sportech earns a share of net gross gaming revenue (GGR) and provides additional services to Fanatics’ online sportsbook for a fee. The sports betting handle across our nine venues totalled $46 million, underscoring the strong adoption of our expanded product suite.
The average monthly betting handle across our nine OTB venues was $12.2 million, comprising $5.6 million from pari-mutuel betting and $6.6 million from sports betting. This balanced contribution highlights the complementary nature of our traditional and emerging wagering channels.
Sportech Ltd: Strategic Transformation Update for 2025
Sportech Ltd is undergoing a transformative phase in 2025, focusing on reinvestment to drive growth and establish the company as a leading entertainment-tech platform in the U.S. wagering market. Strategic initiatives prioritize enhanced customer experiences, operational efficiency, and digital innovation.
Key Strategic Initiatives
- Enhancing Customer Experience: Increased capital expenditure (capex) across the retail estate aims to deliver a superior betting and entertainment environment. The “Home of Live” theme underpins efforts to create vibrant, immersive venues, serving as a catalyst for differentiating the digital channel, MyWinners.com, and capturing rising demand in the U.S. wagering market.
- Relocation to Innovation Hub: In July 2025, Sportech Ltd relocated its corporate headquarters to a state-of-the-art Innovation Hub in Hamden, Connecticut. This move reflects a commitment to fostering innovation, attracting top talent, and aligning operations with a tech-driven vision for the future.
- Optimizing Retail Footprint: In October 2025, Sportech Ltd will exit a high-cost, outdated retail location and open a modern betting venue. This new facility will elevate the customer experience while achieving annual cost savings of approximately $450,000, reinforcing operational efficiency.
Strategic Growth and Market Positioning
The U.S. wagering market continues to expand rapidly, with industry forecasts projecting $30 billion in wagers on the NFL this season and $3.1 billion on the NCAA basketball tournament (March Madness). Against this backdrop, Sportech is strategically evolving from a niche, single-state retail operator into a dynamic entertainment-tech and affiliate platform. While merger and acquisition activity remain active in the U.S. gaming sector, Sportech’s robust legacy, exclusive Connecticut licence, and growing sports betting footprint position us uniquely for growth.
The Group’s ongoing transformation is driven by the recruitment of top-tier talent to identify and execute high-impact opportunities. The company is focused on advancing its digital wagering capabilities, strengthening strategic partnerships, and pursuing new licensing opportunities. By leveraging operational expertise, global reach, and cutting-edge technology, Sportech Ltd aims to deliver superior entertainment experiences and generate sustainable, long-term value for shareholders.
Outlook
Sportech Venues is well-positioned to capitalize on the growing U.S. consumer demand for wagering. Our focus remains on optimizing our Connecticut operations, expanding our sports betting offerings, and enhancing our digital platform, MyWinners.com. We are confident that these efforts, combined with our strategic partnerships and operational efficiencies, will continue to drive growth and strengthen our reputation as a leader in the entertainment-tech space.
Sportech Venues
| Venues
$’000 |
2025 YTD | 2024 YTD | |
| Pari-mutuel revenue | 10,678 | 11,068 | |
| Sports commission | 1,649 | 1,367 | |
| F&B Revenue | 2,267 | 2,297 | |
| Ancillary revenue streams | 946 | 977 | |
| Total revenue | 15,540 | 15,709 | |
| Track Fees | (3,426) | (3,518) | |
| Handle Tax | (1,837) | (1,913) | |
| Tote Fee, etc. | (738) | (655) | |
| F&B COGS | (752) | (741) | |
| Cost of Sales | (6,753) | (6,827) | |
| Marketing & distribution costs | (176) | (202) | |
| Contribution | 8,610 | 8,680 | |
| Contribution margin | 55.4% | 55.3% | |
| Adjusted operating expenses | (6,579) | (6,714) | |
| Adjusted EBITDA | 2,032 | 1,965 | |
| Total capex | 114 | 132 |
Interim consolidated income statement
For the seven months ended 31 July 2025
|
Seven months ended |
Seven months ended 31 July 2024 (Unaudited) |
|
| £000 | £000 | |
| Revenue | 12,511 | 13,276 |
| Cost of sales | (5,658) | (6,006) |
| Gross profit | 6,853 | 7,270 |
| Marketing and distribution costs | (131) | (186) |
| Contribution | 6,722 | 7,084 |
| Other income | – | – |
| Operating costs | (6,922) | (7,586) |
| Operating (loss)/profit | (200) | (502) |
| Finance costs | (254) | (156) |
| Finance income | – | – |
| (Loss)/profit before taxation from continuing operations | (454) | (658) |
| Taxation – continuing operations | – | – |
| (Loss)/profit for the period from continuing operations | (454) | (658) |
| Profit after taxation from discontinued operations | — | – |
| (Loss)/profit for the period | (454) | (658) |
Interim consolidated balance sheet
As at 31 July 2025
|
As at 31 July |
As at
31 December |
|
| £000 | £000 | |
| ASSETS | ||
| Non-current assets | ||
| Goodwill | – | – |
| Intangible fixed assets | 5,539 | 6,140 |
| Property, plant and equipment | 525 | 732 |
| Right-of-use assets | 6,280 | 7,847 |
| Trade and other receivables | 170 | 187 |
| Total non-current assets | 12,514 | 14,906 |
| Current assets | ||
| Trade and other receivables | 1,038 | 532 |
| Inventories | 99 | 121 |
| Cash and cash equivalents | 2,666 | 3,570 |
| Total current assets | 3,803 | 4,223 |
| TOTAL ASSETS | 16,317 | 19,129 |
| LIABILITIES | ||
| Current liabilities | ||
| Trade and other payables | (3,837) | (3,754) |
| Lease liabilities | (625) | (998) |
| Total current liabilities | (4,462) | (4,752) |
| Net current assets | (659) | (530) |
| Non-current liabilities | ||
| Lease liabilities | (7,163) | (8,461) |
| TOTAL LIABILITIES | (11,625) | (13,213) |
| NET ASSETS | 4,693 | 5,916 |
| EQUITY | ||
| Ordinary shares | 971 | 971 |
| Other reserves | 3,830 | 4,461 |
| Retained earnings/(accumulated losses) | (107) | 484 |
| TOTAL EQUITY | 4,693 | 5,916 |
Interim consolidated statement of cash flows
For the seven months ended 31 July 2025
|
Seven months ended |
Year ended 31 December 2024 |
|
| £000 | £000 | |
| Cash flows (used in)/from operating activities | ||
| Cash (used in)/generated from operations, before separately disclosed items | 547 | 1,439 |
| Tax paid | (30) | 11 |
| Net cash generated (used in)/from operating activities before separately disclosed items | 517 | 1,451 |
| Cash outflows – separately disclosed items | (11) | (253) |
| Cash generated (used in)/from operations | 506 | 1,198 |
| Cash flows (used in)/from investing activities | ||
| Disposal of Windsor Locks, Bradley (net of transaction costs) | – | 3,566 |
| Purchase of property, plant and equipment | (114) | (133) |
| Net cash generated from/(used in) investing activities | (114) | 3,434 |
| Cash flows used in financing activities | ||
| Principal paid on lease liabilities | (779) | (1,246) |
| Interest paid on lease liabilities | (254) | (334) |
| Dividend paid | (3,399) | |
| Interest received | – | 13 |
| Cash used in financing activities | (1,032) | (4,966) |
| Net (decrease)/increase in cash and cash equivalents | (640) | (335) |
| Effect of foreign exchange on cash and cash equivalents | (256) | 61 |
| Cash and cash equivalents at the beginning of the year | 3922 | 4,196 |
| Group cash and cash equivalents at the end of the period | 3,027 | 3,922 |
| Represented by: | ||
| Cash and cash equivalents | 3.027 | 3,922 |
| Less customer funds | (361) | (353) |
| Adjusted net cash at the end of the period | 2,666 | 3,569 |
