Nektan reveals revenue increase, confirms acquisition

Nektan has announced a 130% year-on-year increase in net gaming revenue for the 12 months to June 30, 2017, and also confirmed an agreement to buy out its joint venture partners in Nektan Marketing Services (NMS).

In a business update, Nektan revealed that net gaming revenue for the full year came in at £13.1m (€16.9m/€14.9m), up from £5.7m in the same period in the previous year.

Transactions in the 12-month period amounted to £423.5m, an increase of 139% on £176.9m, with cash wagering also jumping 157% year-on-year to £390.3m.

In addition, Nektan recorded an increase in the number of first-time depositors, with this figure hiking 165% from 49,176 to 130,105.

Gary Shaw, who is serving as interim chief executive of Nektan, following the exit of Leigh Nissim last month, said: “We continue to make progress across our three divisions. I am especially encouraged by the progress of the European managed casino network which is benefiting from the hard work of our team, our casino partners and the strong technical foundation of our proprietary platform, Evolve.

“Revenues have grown by 130% over the last year, whilst our cost base has reduced, providing a more financially efficient platform from which to grow.”

Meanwhile, Nektan has reached an agreement to buy out its joint venture partners in NMS for a cash consideration of £500,000.

Netkan said the “strategic transaction” will give the company the ability to take greater control of its players and marketing on behalf of its partners.

In addition, Nektan has entered a marketing services contract with ActiveWin Media Limited for certain player marketing services, extended a contract with Kerching Limited for the Kerching brand, and agreed the launch of further casinos managed by ActiveWin.

Nektan also confirmed the appointment of Sagi Lahav as its new chief operating officer, effective July 3.

Lahav has held a number of senior management roles in the gambling industry and recently served as chief executive and managing director of Mansion Group.

Nektan also used the business update to announce it has secured commitments to raise £2.5m through an unsecured loan facility, to provide additional financing to support growth and associated product development.

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