Update | Veltyco extends relationship with eSports.com
Veltyco Group this morning announced that it has extended its relationship with eSports.com, a fast growing eSports community portal targeting a significant global audience. The partnership will take the form of a 50/50 JV between Veltyco and eSports.com AG, the parent company of eSports.com. Both parties will provide equal funding to the project.
The JV will create a blockchain based infrastructure platform seeking to bring together members and/or customers and communities in sports, gaming and playing to a platform which seeks to transfer data, such as know your client regulated information in a decentralised manner and which could in future be combined with automated payments.
There are no changes to our current forecasts as the project itself is early stage. However, in our initiation note dated 20 February 2018 we alluded to management looking for new areas of growth over and above the real money gaming business, so the new JV provides further evidence of this.
We are looking for 31% YoY EBITDA growth to €10.5m in FY18E. The stock currently trades around c.6x FY18 EBITDA and with a dividend to come on the back of the final results in April, the rating looks undemanding. We reiterate our Buy recommendation and 129p price target on Veltyco.