SportPesa technology firm turns a profit on revenue jump

SPS Sportsoft Limited, the company offering technology support services to SportPesa betting firms, last year reversed its 2020 losses to book a profit of £170,433 (Sh24.6 million) indicating acquisition of new business.

The firm had made a loss of £4.1 million (Sh595 million) in 2020 after its single largest client — Kenya-based Pevans East Africa — ceased operations in 2019 after the government declined to renew its operating licence, citing unpaid taxes in excess of Sh15 billion.

Pevans achieved large-scale profitability in record time after launching operations in 2014, attracting increased government scrutiny amid concerns of increased gambling addiction.

SPS said in regulatory filings in the UK that its revenue rose fourfold last year to £6.1 million (Sh887 million) from £1.48 million (Sh214 million) in 2020, largely drawn from services rendered to clients.

Pevans used to account for 96 percent of SPS’s total revenue in the past. SPS, its parent firm Sportpesa Global Holdings Limited (SPGHL) and Pevans, which used to trade under the SportPesa brand, have common shareholders including Kenyan and Bulgarian businessmen.

Other SPS clients include SPGHL’s subsidiaries trading under the SportPesa brand in Tanzania and South Africa.

Source: businessdailyafrica.com

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