Veltyco repositions after 40% revenue boost dampened by rising costs

The company intends to launch its own regulated brand in the online financial trading sector during the fourth quarter after acquiring a database of active customers in the financial trading industry.

"With the launch in mind, we have taken the decision to reduce marketing spend in this vertical which will impact revenues in the second half of 2018, though operating margins are expected to increase," said chairman Gilles Ohana.

Due to the launch and the related reduction of third party marketing activities in the online financial trading sector, the company anticipates a reduction in revenue over the second half of the year but improve margins and its cash position over time, starting in the next full-year.

For the six-month period ended 30 June revenues came in at €8.9m but marketing and selling expenses jumped by 60% to €2.8m and general administrative expenses rose by 170% to €1.1m. Consequently, profit before tax remained roughly even at €3.7m.

Cash and cash equivalents stood at €1m at 30 June, down from €1.3m at the same point last year, and the AIM traded company also offered a maiden dividend of 0.25p per share.

Ohana said: "The first half of 2018 has been a very busy period for the group, with a number of important developments taking place. With regards to our own brand and operations, the group continues to invest in Bet90 to further increase its contribution to the group's results."

Veltyco has a 51% stake in sportsbook and casino brand Bet90, which recorded strong growth in the period following its rollout in South America during the period.

Veltyco’s shares were up 5.48% at 38.50p at 0918 BST.