30th Sep 2019 13:45
(Alliance News) - Online marketing firm Veltyco Group PLC on Monday reported lower revenue and swung to a first-half loss on the absence of its financial trading and lottery operations, which it closed in the second half of 2018.
In the six months to June 30, revenue fell sharply to EUR1.8 million from EUR8.9 million and the company swung to a pretax loss of EUR1.1 million from a EUR3.7 million profit.
The figures were less stark when just considering its continued operations, however. Revenue fell by 14% from EUR2.1 million a year before, but a bigger fall in administrative expenses contributed to a narrowed loss from EUR1.3 million previously. Administrative expenses shrunk by 32% to EUR1.9 million from EUR2.8 million.
Veltyco is now focused on its marketing activities through the Betsafe brand in Germany and its sportsbook and casino activities through Bet90, it has a 51% stake in the latter. It closed its financial trading and lottery verticals last year, which resulted in impairment costs of EUR10.7 million in 2018.
Executive Chair Paul Duffen said: "2019 has been a very challenging period for the group, with a focus on operational restructuring following termination of non-cash generating activities in the online financial trading vertical in the second half of 2018. We have made good progress and will continue to focus on expanding the operations of Bet90 and Betsafe."
The company said that while trading since June has been in line with expectations, it is still reliant on being able "to manage its creditors, which continue to be meaningfully in excess of the group's current cash resources".
Duffen explained: "Whilst the group has sought to reduced its operating costs to match its current operations, including accruing directors' salaries until further funding is secured, the group has continued to be loss making on a monthly basis, though the directors expect this to improve going forward."
Shares in Veltyco were untraded in London on Monday afternoon, last quoted at 4.55 pence each.
By Eric Cunha; [email protected]
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