The annual report of Catalyst Media Group, who own just over 20% of media provider SIS reveal an interesting insight to their past and future trading plans.
The company made a profit of just of £1m for the year ending, their share of SIS’s overall profits for the year of £5.1m. That compares to the £17m the previous year and £26m in 2016.
The reason are many and include new contracts being “on lower margins and will affect SIS’s revenue generation an profitability going forward”. The figures don’t include the loss of the horseracing product from ARC.
The biggest concern going forward though is the effect of the reduction in pay-outs of the FOBT machines which are predicted to lead to widespread closure of betting shops.
SIS claim contracts with “98 of the UK and Irish retail market” but like rivals ARC/TRP, they are looking to expand their overseas/digital business. They are also due to introduce a 24 hour service from January.
Although forecasting profits for the next year between £3.5m-£4.5m the chairman’s report concedes some uncertainty saying: “There are a wide range of outcomes for subsequent profitability, the levels of which are too variable to forecast today”
