TIDMVLTY
RNS Number : 3611Y
Veltyco Group PLC
21 August 2018
21 August 2018
Veltyco Group plc
("Veltyco", the "Company" or the "Group")
Betsson Services contract renewed, update on receivables
and launch of own regulated brand
Betsson contract renewed
Veltyco Group plc (AIM:VLTY), the online marketing and operating
company for the gaming industry, is pleased to announce that its
wholly owned subsidiary, Sheltyco Enterprises Ltd, has agreed with
Betsson Services Ltd ("Betsson"), the sports book operator, to
renew Veltyco's marketing agreement until May 2021. Pursuant to the
new agreement, Veltyco will continue to exclusively market
Betsson's Betsafe brand in Germany on broadly similar terms as the
previous agreement.
Betsson is part of the Betsson AB group, the Swedish quoted
investor and manager of companies in the online gaming industry,
with a market capitalisation of approximately EUR885 million.
Betsafe is one of the leading global online gaming brands, with
over 450,000 customers from over 100 countries. There is an
increasing global recognition of the Betsafe brand, as demonstrated
by Betsson's sponsorship of London-based, Saracens Rugby Club and
boxer Tony Bellew.
Veltyco has been working with Betsson since March 2012 as its
exclusive marketing partner for the German speaking market,
receiving a share of all revenues generated from the Betsafe brand
in German speaking countries, in recognition of its marketing
activities. Historically, Veltyco has increased the visibility and
recognition of the Betsafe brand, through premium marketing
partnerships with top German Bundesliga clubs and other
high-profile sporting events.
The renewal of the marketing agreement with Betsson is further
to the disclosure in Veltyco's 2017 Annual Report and Accounts, in
which the Company confirmed that it had, subject to documentation,
reached agreement with Betsson to further extend its existing
marketing agreement. If Veltyco's relationship with Betsson is
expanded beyond the current geographic arrangement, this will be
subject to further agreement and further announcements will be made
as appropriate.
Commenting on the contract renewal, Gilles Ohana, Chairman of
Veltyco, said: "Since inception, Betsafe has formed a core part of
the Group's operations. The partnership jointly leverages both
companies' respective strengths including Betsson's and Betsafe's
clear operational excellence and Veltyco's core expertise in
Germany. Betsson's confidence in Veltyco in extending its marketing
agreement in Germany through to 2021, further strengthens our
relationship and we very much look forward to continuing the
expansion of the Betsafe brand in Germany to the benefit of all
parties."
Update on receivable position
As at 17 August 2018, the Group's total receivable balance
amounted to, in aggregate, EUR8.9 million, excluding accrued income
in respect of the Group's online financial trading activities for
June and July 2018. The current cash position of the Company has
increased to EUR1.3 million, with a further EUR0.35 million
expected to be received before the end of August 2018 from
Celestial Trading Limited ("Celestial"), which now operates the
online financial trading brands, as well as the second monthly
instalment of EUR0.3 million due from Altair Entertainment NV
("Altair"), resulting in an expected cash balance at the end of
August 2018 of approximately EUR1.8 million.
As indicated in the Group's final results announcement for the
year ended 31 December 2017, the majority of the Group's receivable
balance relates to its marketing activities for online financial
trading. As at 17 August 2018, receivables in respect of these
marketing activities amounted to EUR8.5 million, excluding accrued
income for June 2018 of approximately EUR0.7 million and for July
2018 which is still to be finalised in the ordinary course of
business. EUR5.4 million of this balance is due from Celestial, of
which EUR1.5 million relates to activities in 2017 and EUR3.9
million relates to activities in 2018. EUR1.8 million of the
balance due in respect of 2018 activities is overdue and the
remaining EUR2.1 million is within current payment terms. The
remainder of the balance due in relation to marketing activities
for online financial trading, being EUR3.1 million, is due from
Altair in respect of the Group's activities in 2017 and, as
announced on 26 July 2018, Veltyco has reached agreement with
Altair to reduce this balance by a minimum of EUR0.3 million per
month, with the first payment having been received as planned
during July 2018.
Whilst this receivable balance is expected to increase in the
short term due to the invoicing of currently accrued income, good
progress is being made with Celestial to reduce the amounts due to
the Company and the Directors believe that the Group's receivable
balance will be reduced going forward, as regular payments are
received from Celestial. In addition, the Directors are seeking to
reduce the payment terms in respect of online financial trading,
which, once implemented, will further improve the Group's
receivable balance during the second half of 2018.
The Group also continues to expand its corporate banking
relationships, which is expected to assist the Group in reducing
this receivable balance and this process is expected to continue
through the second half of 2018.
The Company will make further announcements in relation to the
above as appropriate.
Launch of own regulated brand
In May 2018 the Company acquired a database of users active in
the online trading sector and the Group is making good progress in
respect of launching its own regulated brand in the online
financial trading sector, which is expected in Q4 2018.
Given the Group's experience in the online financial trading
sector, the Directors believe that the launch of the Group's own
regulated brand is the logical next step in the Group's
development, as this will result in the Group receiving a larger
proportion of the revenues from its activities in the sector. In
addition, it will also result in monies being received directly by
the Group from such activities, as opposed to receiving payments
from third parties in respect of the Group's marketing activities,
which will help mitigate the build-up of receivables in the future.
The Company will keep shareholders updated on progress in this
regard.
Commenting on these Company matters, Gilles Ohana, Chairman of
Veltyco, said: "We believe that meaningful progress has been
achieved in addressing and normalising the receivables balance, and
we are now looking forward to the next phase of the Company's
development with the launch of its own regulated brand in the
online trading sector."
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) 596/2014.
For further information please contact:
Veltyco Group Plc +44 (0)1624 605 764
Gilles Ohana, Chairman
Melissa Blau, Chief Executive Officer
Marcel Noordeloos, Chief Financial Officer
Strand Hanson Limited (Nominated Adviser) +44 (0)20 7409 3494
James Harris / Richard Tulloch / James Dance
Whitman Howard Ltd (Broker) +44 (0)20 7659 1234
Nick Lovering / Christopher Furness
IFC Advisory (Financial PR & IR) +44 (0)20 3934 6630
Graham Herring / Miles Nolan / Zach Cohen
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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