Veltyco warns of first-half loss; mulls additional funding opportunities

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Online marketing company for the gambling sector Veltyco Group warned it would post a first-half loss after its revenue for the first four months of the year came in below management expectations.

The company recently ended marketing agreements relating to lottery and financial trading and was now focused on sportsbook and casino operations and marketing.

'The group's revenue in the current year to 30 April 2019 for the combined sportsbook and casino operations is in line with the same period in 2018,' Veltyco said.

'However, as the result of a change in the revenue mix, with a larger share of the revenues being generated from lower margin activities, and a number of large wins across its operations, which are a risk given the nature of the group's activities, revenue for the first four months of 2019 is below management expectations.'

'Although the directors have restructured the operating costs to match the current operations, as a result of the above, the directors believe that the result for the six months ending 30 June 2019 is likely to show a loss.'

Consequently, the company said its directors were continuing to managing its cash resources 'carefully'.

'Whilst they believe that the group is able to continue to meet its liabilities as they fall due, if trading is not in line with their expectations going forward, the group's ability to meet such liabilities as they fall due may be impacted,' it added.

'Accordingly, the directors continue to explore appropriate sources of capital.'