Netkan posts revenue growth despite losses

Nektan was able to achieve a significant year-on-year increase in revenue during the six months to December 31, 2015, despite posting losses.

First-halfrevenue amounted to £1.6 million (€2.1 million/$2.3 million), up from £250,000 in the previous year.

However, adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) came in at a loss of £3.7 million, compared to a negative figure of £2.3 million in the previous year, while operating loss also increased to £5 million.

Elsewhere, loss before taxation increased from £3.9 million to £6.6 million, with basic and diluted loss per share also worsening.

Gary Shaw, acting chief executive at Nektan, said: “In Europe, we are disappointed with the delayed acceleration in the period of one large contract which was anticipated to be worth approximately £7 million in current year NGR.

“This has impacted revenues and EBITDA for the group for the year as a whole.

“We are working hard with our partner to provide upgraded content, which will see an accelerated launch towards the end of the current financial year; strong action has also been taken to reduce the ongoing monthly cost base.

“Excluding the effects of this delayed contract, we are continuing to see significant growth in our net gaming revenues and remain confident in the outlook for the full year and beyond as Nektan continues to strengthen its position and to deliver strong momentum in our key markets in Europe and the US business.”

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