Nektan sees revenues rise, losses cut
Nektan saw triple-digit revenue growth and improvement across key indicators during the most recent financial year.
In a trading update the gaming solutions and services provider, also revealed it has raised £1.75m through a placing of five million new ordinary shares and subscriptions for 3.2 million new ordinary shares both at a price of 21p per share.
In the year to June 30, Nektan achieved revenue growth of 124% to £13.3m, with net gaming revenue up by 130% to £13.1m.
The company also recruited 130,105 new first time depositing players, compared to 49,176 in the previous year.
Adjusted EBITDA loss was at £3.4m, down considerably on the £5.7m in 2016. Nektan recorded an operating loss for the year of £4.6m compared to £8.3m in 2016.
Gary Shaw, interim chief executive of Nektan, said there was plenty of reason for optimisim, especially as since the end of the financial year the company has opened a further 19 casinos and launched Evolve Lite, Nektan’s B2B platform.
He said: “In Europe, Nektan will continue to focus on its core Managed Solutions business offering, whilst leveraging the infrastructure and capability to roll out its B2B business. In the US, we continue to see a number of opportunities to use Evolve with the mobile in venue casino system, in what is likely to be one of the largest global mobile gaming markets.
“We have just signed our first platform deal and are focusing on leveraging our language capability, which we have built within the software, so that we would expect to be live in the US, Europe and Asia in our current financial year.”
Nektan's full end-to-end technology platform, Evolve, aims to simplify and support the route to mobile and desktop gaming revenues, managing the full customer experience and back-office operations.
Shaw added: “As we have only one business line covering our central technology cost for Managed Solutions Europe, we expect to see significant margin uplift as we turn on and develop these new revenue lines. We also would expect a similar growth trajectory to our European Managed Solutions business giving the business material scalability as we utilise the same software platform across additional continents, whilst at the same time being highly relevant for the localised marketplaces.
“The company is well placed to maximise revenue and margin growth across both North American, Europe and additional geographies.”
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