Pools operator retains global amibitions

SPORTECH, the listed betting services company with a football pools operation in Liverpool, says it has received “more than one” potential offer for the pools business.

The company, which recently ended takeover talks with a Canadian suitor, said in a trading update it had “recently received more than one preliminary proposal in respect of The Football Pools” and these will be reviewed “in due course”.

Sportech said in a trading report covering the period from August 21 to November 9,  that it believes its activities in international pool and tote betting services for horseracing and football provide a regulatory and legal platform to support future growth across a wider range of gaming and entertainment opportunities, particularly in the US.

Discussions with Canadian company Contagious Gaming Inc regarding a potential offer for Sportech terminated on Friday October 6, the company reiterated.

“The Football Pools continues to trade in line with management expectations.

 “In the subscription channel, and importantly in our drive for stability this year and then growth in the business, revenues remain broadly in line with prior year, driven by an increase in spend per head, together with improved retention in core player numbers, following the successful roll out of an improved CRM programme.”
   
New player acquisition was slightly down year on year, 16,000 to date (2014: 20,000) with 9,000 digital (2014: 7,000), due to extensive trials of new digital acquisition channels and a planned reduction in telemarketing activity.
 
However, following these trials, the business remains confident it will continue to improve acquisition from current levels, driving stability in the core pools player base.

Meanwhile, the group has been told advised that the hearing of its long-running appeal to the Court of Appeal in relation to the £97m VAT repayment claim on the “Spot the Ball” game, due to be heard on November 3 and 4, has been delayed due to a lack of judicial availability.

The Court of Appeal will now schedule a new hearing date.