LONDON (ShareCast) - (Sharecast News) - Online gaming marketing and operating company Veltyco Group updated the market on its receivable position and operations on Thursday, reporting that as at 20 November, its trade receivable balance amounted to €10.6m, of which €9.1m related to its online financial trading marketing activities.
The AIM-traded firm said it continued to struggle with cash collection in the online financial trading marketing vertical, and since 21 September, it had received €0.3m from Altair Entertainment in respect of the September monthly payment, and €0.05m from Celestial Trading.

However, it said Altair's monthly payment in respect of October had not yet been received, and as a result, the group had also now reduced marketing activities in the vertical to zero as it seeked to reduce its receivable balance and transition revenues to its own regulated brand, which was expected to be launched in December.

"Given the ongoing issues regarding the reduction of this receivable balance and the decision to cease further investment in the financial trading marketing vertical, the board of Veltyco will need to consider the potential impairment of the receivable balances and intangible assets attributable to this vertical," the board said in its statement.

Of the group's outstanding receivable balance of €10.6m as at 20 November, €6.7m was due from Celestial, of which €1.5m related to activities in 2017 and €5.2m related to activities in 2018, with €4.7m being overdue and €0.5m being within current payment terms.

€2.5m was due from Altair, with the remainder of the €1.4m balance relating predominantly to the group's lottery vertical.

As at 16 November, the group had a cash position of around €0.6m.

"If the company is unable to increase its overall cash position, its ability to provide the level of marketing spend to support the launch of its own regulated online financial trading brand, which is subject to customary regulatory approvals, expected to be launched in December, will be impacted," the board cautioned.

"This will in turn have an impact on the growth and revenue generation of the group's regulated brand following its launch."

Trading in the group's sportsbook and casino vertical remained in line with management expectations, Veltyco said.

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