Veltyco set for losses after shuttering lottery and financial trading units

Online marketing and operating company Veltyco warned on Friday that the first six months of its trading year would result in a loss following the termination of its lottery and financial trading marketing agreements.

Veltyco, which turned all its attention to its sportsbook and casino operations, said revenues in both divisions were in line with those seen a year earlier but, as a result of the change in revenue mix, with a larger share of the revenues being generated from lower margin activities, revenue for the first four months of 2019 was "below management expectations".

While the AIM-listed firm's directors restructured the group's operating costs in order to match its current operations, Veltyco still believes that the six months ending 30 June will likely 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," said Veltyco.

At 0840 BST, Veltyco shares were down 42.40% to 1.80p.