Changes at Valitor in order to turn around the company’s losses.
Valitor has decided to undertake a reorganisation of the company in order to strengthen Valitor’s core business and to turn around the company’s losses. The changes will affect all offices and the cost of the reorganisation is expected to be around ISK 600 million. Further details will be announced in two weeks’ time. The measures aim to take the company from an operating loss to an EBITDA profit.
Valitor’s investments in international operations have been considerable in recent years. These investments have led to revenue growth, but sales of omni-channel solutions – a product line for large pan-European companies – have not met expectations. Compared to a total investment of ISK 6 billion in the omni-channel solutions since 2014, the current book value of these intangible assets is ISK 4.5 billion, while income from the solution is expected to be only ISK 1.1 billion 2019. It is planned to reduce continuing investments considerably in this field.
The organizational changes will significantly reduce the company’s investment needs and costs, which will have a positive impact on its financial results. Valitor remains a financially strong international payment solutions company, offering diverse services in the field of acquiring, issuing and gateway services.
December 30, 2019