Veltyco Group PLC (LON:VLTY) Chairman David Mathewson caught up with DirectorsTalk for an exclusive interview to discuss their final results for year ended 31 December 2016
Q1: David, Veltyco Group has just reported a strong set of final results, can you explain the background to these numbers for us please?
A1: Veltyco’s a very interesting company, it was formed during the course of last year, 30th June 2016, through a reverse takeover of a business called Sheltyco which was growing strongly, we very much liked the people and the market they were in. They’re involved in marketing agreements for online gaming, for casinos, sports betting, lotteries and financial instruments and we really like the market, we had looked at some other acquisitions but this was the one that we really felt was going to show great growth and indeed the results have come through very strongly. We’re delighted with progress to date and now looking forward to bedding down Sheltyco and growing it a very exciting way so, so far so good but lots more to come.
Q2: Over the period you have added new marketing agreements, how have these agreements benefited Veltyco?
A2: These are broadening our offering in the marketplace, they’ve really significantly increased our revenues, we do a lot of profit share agreements so that has produced very good top line revenue, we’ve kept control of costs so the EBITDA is coming through strongly as we had anticipated.
Q3: Veltyco recently completed 2 acquisitions, can you explain the rationale behind those 2 deals?
A3: Well, once again that’s to broaden our offering, we raised €2.5 million and these have been invested in 2 acquisitions. One of them is to develop the brand of Bet 90, particularly in the sportsbook offering, we’re looking at expanding our territories, we’re very strong in Europe but we’re broadening the base now in Europe, particular focus on the Nordic countries and indeed expanding into South America, these are the 2 main areas of focus for Bet 90. The other acquisition, similarly in the sportsbook arena, so we’re finding that these 2 acquisitions are early days yet and have got be really given impetus to grow but we’re very excited about the opportunity there and the prospects.
Q4: Current trading is strong so what is the outlook like for the remainder of the year for Veltyco Group PLC?
A4: I think I should just refer you to my comment in the trading statement, we said trading in the first quarter of 2017 has been strong, now that is a given and our total revenues totalled €2.75 million for the first 3 months. We’re significantly ahead in the first quarter compared with the period in the second half of last year, which was itself a very strong trading period for the Veltyco and the directors are confident for the outcome this year. We’ve got momentum, we’re growing strongly and we’re very excited about the prospects for the business so it’s a very positive statement we feel we should put out and inform the market.