Nektan plot further investment after revenue growth

Leigh Nissim, chief executive of Nektan, has said the company plans to build on revenue growth in 2016 by investing more in its proprietary Evolve platform.

Net gaming revenue in the 12 months to June 30 amounted to £5.8 million (€6.8 million/$7.1 million), up from just £528,000 in 2015.

However, adjusted earnings before interest, tax, depreciation and amortisation came in at a loss of £5.7 million, compared to negative £5.1 million at the same point in the previous year.

In addition, operating loss amounted to £8.3 million, while loss after taxation for the full year stood at £10.5 million.

While Nektan experienced losses in parts of the business during the most recent 12-month period, the firm has enjoyed a positive start to the current financial year.

In the first quarter to the end of September 2016, net gaming revenue amounted to £2.1 million, which represents an increase of 295% on the £500,000 collected in the corresponding period last year.

First-time depositors are up 115% to 14,037, while cash wagering rocketed by 328% to £65.9 million.

“In Europe, Nektan continues to focus on accelerating momentum and optimising its casino network, with the addition of new partners, high quality casino games and improved features and facilities to keep attracting and retaining players, which we are further building on to deliver profitable growth,” said Nissim, who joined the company in May 2016.

“We expect that our North American Respin business, now an operating subsidiary of the group, will increase its installed customer base amongst tribal casinos due to the strength of our product, pipeline and level of interest from casinos for our on-premise Class II mobile casino solution.

“We will continue to invest in our proprietary core platform, Evolve, which powers both our North American and European businesses.

“The intelligent use of the flexibility and speed this provides will allow us to leverage the company's assets, expertise and networks across both North America and Europe, to maximise revenue in both businesses and deliver profitable growth to shareholders. “

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