Veltyco Group plc (AIM: VLTY), the online marketing company for the gaming industry, provides the following update on current trading.
As previously announced, following the termination of the marketing agreements relating to lottery and financial trading, the Company is now focused on its 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. 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.
In light of the above the Directors continue to manage the Group’s cash resources carefully, and 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. Accordingly, the Directors continue to explore appropriate sources of capital.
The Company will announce its results for the year ended 31 December 2018 in late June 2019.