Veltyco Group PLC Trading Update (8036V)
July 26 2018 - 1:02AM
UK Regulatory
TIDMVLTY
RNS Number : 8036V
Veltyco Group PLC
26 July 2018
26 July 2018
Veltyco Group PLC
("Veltyco", "the Company" or "the Group")
Trading Update
Veltyco Group PLC (AIM: VLTY), the online marketing and operator
company for the gaming industry, is pleased to announce the
following trading update for the six months ending 30 June
2018.
Following the reported growth in 2017, the momentum has
continued and revenues for the first six months of 2018 are in line
with management expectations, with revenues from marketing
activities for the online financial trading sector being ahead of
its expectations.
Bet90, the Company's sportsbook and casino operations in which
it has a 51% interest, continues to achieve good growth, albeit
slower than management anticipated and the Board has taken the
decision to accelerate investments in the marketing of the Bet90
brand, including the roll out into the South American markets. This
has resulted in increased costs in the first six months of 2018,
meaning that the Group's EBITDA for the period is likely to be
marginally below budget. In addition, as a result of the increased
costs the Group had a cash position of approximately EUR1.0 million
as at 30 June 2018.
The Group continues to restructure its corporate banking
relationships, which is expected to assist the Group in reducing
its receivable position and this process is expected to continue
into the second half of 2018. Given this backdrop, the Group has
entered into an agreement with Altair Entertainment NV ("Altair")
in respect of Altair's historic receivable amounting to, in
aggregate, EUR3.4 million as at 30 June 2018. Pursuant to this
agreement, Altair will reduce the receivable by a minimum of
EUR300,000 per month, with Veltyco having already received the
first payment. Following the strong performance within the online
financial trading sector and in line with the receivable profile
for the marketing activities in this sector, the Group's overall
receivable position has increased marginally from the last reported
figure published in the Group's report and accounts for 2017 of
EUR8.4 million as at 28 May 2018.
The Company expects to announce its interim results for the six
months ended 30 June 2018 during the second half of September
2018.
For further information please contact:
Veltyco Group Plc
Gilles Ohana, Non-executive
Chairman
Melissa Blau, CEO
Marcel Noordeloos, CFO +44 (0)1624 605 764
Strand Hanson Limited (Nominated
Adviser)
James Harris / Richard Tulloch
/ James Dance +44 (0)20 7409 3494
Whitman Howard Ltd (Broker)
Nick Lovering +44 (0)20 7659 1234
IFC Advisory (Financial PR
& IR)
Graham Herring / Miles Nolan
/ Zach Cohen +44 (0)20 3934 6630
About Veltyco
Veltyco is a group of companies focused on generating marketing
leads and entering into marketing contracts for the activities of
various partners in the gaming industry as well as operating its
own brands. Veltyco focuses on complementary activities under one
umbrella, leveraging its historical cash generative activities of
marketing online casinos and sports betting.
Website: www.veltyco.com
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END
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