Voya has warned that its cash-flow problems could be a factor in its imminent demise.
Key points:Voya says it has a balance sheet worth $1.7 billion, including $600 million of its own equityVoya is facing a $500 million debt write-down due to poor growthVoya has already had to cancel two private equity fundsIt has also lost around $1 million on its online gaming businessIt has taken a $1 billion write-off for its online gambling business and is considering a $300 million write-up for its gambling businessThe financial services giant, which is based in Queensland, said it had a balance of $1,735 million as of June 30.
That was down from $1 “over the past year”, the company said.
The company is struggling with growth, the Australian Financial Review has reported.
Its online gaming businesses have suffered from slow growth, and the online gambling businesses are not profitable.
Voya said it was considering a write-own of $300-400 million for its casino business.
The Australian Financial Press has reported that Voya had already written off $600-700 million in its gaming business.
Voyas casino business was written off last year after a record-breaking $1-billion writedown from its online casino business, which was also the subject of a major legal battle.VOYA INVESTMENT PICKUPVoya invested $3.7 million in online gaming start-up Gameloft, which went bust in 2016, and a further $2 million in a new venture called The Vault.
Voys, the online retailer, announced plans to cut its $50 million investment in Gamelove, which it said was part of a wider effort to improve its cash flow and return to profitability.
Vox Media, the media group owned by publisher Fairfax Media, said that the Gamelots’ funding was part-funded by a fund led by investment fund Fidelity Investments.
Fidelity said it has “no connection” to the investment fund.
“We have been involved in numerous high-profile fund investments, including the Gamblers fund, and we believe the fund has a significant role in the success of Gameloves growth,” a spokeswoman said.
“However, we are not a shareholder of Gamels fund.”VOYAS TAXES ANOTHER HITVoya’s tax bill is expected to be another $1bn over the next 12 months.
The business has had to make $500,000 in the last two years due to a “cash flow problem”, and the company has also had to write off a $600,000 debt write down.
The financial watchdog, the Financial Review, said in its latest report that VOYA had made a $3 billion write off of its gaming and online gaming companies, which included the loss of around $500-700 the company made in the past 12 months alone.
Voskam’s cash flow problems and the tax write-offs could be affecting Voya’s ability to raise further funding.
“The tax write off and the writedoff are very concerning,” Voya chief executive Steve Loughlin told the Financial Press.
“Voya was able to take on a number of debt commitments which we have been able to get off the ground and to support our growth, but if those commitments are not paid, we will not be able to continue to operate as we do now.”
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