US cold snap and currency turbulence hits Sportech

Bad US weather and currency movements have taken the shine off first-half results at pools and tote betting group Sportech.Sportech said underlying pre-tax earnings in the six months to 30 June came in 0.8% lower at £12.1m on a 1.7% rise in revenue to £52.6m.Profits in the group's racing and digital business rose £600,000 to £3.7m while its football pools business matched the prior year's result at £8.2m, although its venues fell £600,000 to £2m.Sportech said the venue business, which includes sports bars offering betting on racing and soccer, took a hit from the cold snap in the US earlier this year, start-up costs and increased pressure on operating margins.Chief executive Ian Penrose said: "Given the pleasing growth in our racing and digital division, the solid performance of our football pools business, and the positive regulatory progress we have made in our venues business, it is disappointing that the extreme US winter weather together with margin pressures in Connecticut have taken the shine off our financial performance."Like all companies with interests in the US, the reported results have been negatively impacted by the strength of sterling."On a constant currency basis the group remains in line to meet its expectations, although at current exchange rates the reported full-year result will be adversely impacted." Shares in Sportech fell 5.25p or 6.2% to 79.75p at 14:00 in London.PW