Nektan losses mount

Nektan plc, a Gibraltar-based international B2B mobile gaming content developer and platform provider has released its full year and first quarter results, showing that although year-on-year revenues have risen significantly, its losses have mounted, and revealing that it has plans in train to raise a further GBP 2.275 in fresh funding.

Highlights of the report include:

* For the year ending June 30 2016, Nektan recorded NGR of GBP 5.783 million, and processed 39,589,325 bets from 50,805 cash players;

* In the first quarter of the new year (ended September 30) the company reported NGR up 295 percent at GBP 2.1 million, 14,037 first-time depositors and cash wagering of GBP 65.9 million – the latter figure representing an increase year-on-year of 328 percent;

* The company launched 29 new partners to its casino network on multi-year contracts;

* Losses before interest income and expense, income taxes, depreciation and amortisation) rose to GBP 5.744 million (FY 2015: GBP 5.109 million) in 2015, contributing to a loss for the year, after taxation, of GBP 10.846 million, with loss per share up from 39.6p to 44.8p;

* Proposed fundraising of up to GBP 2.275 million gross to provide near term working capital by way of subscriptions for new ordinary shares. The company claims it has received indications of interest from investors which would be sufficient to complete the subscription;

* Series A Loan Note holders have agreed to allow the company, at its choice, to defer interest payments;

* On 21 December, Nektan increased its ownership of Respin Inc, the Class II mobile on-premises solution provider, to 85 percent as additional funding was converted to an increased membership interest, transitioning the business to an operating subsidiary of Nektan from a joint venture;

* On 22 August, the company entered into an asset disposal and separate licensing agreement with Buckingham HMB Ltd for three of the Nektan’s wholly-owned gaming brands for GBP 1.95 million in cash and a five-year licencing agreement;

* Respin LLC, the company’s joint US venture with Spin Games has launched its Rapid Games product, which offers land casino patrons the opportunity to wager on their own devices on the premises.

Nektan CEO Leigh Nissim commented:

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

“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-premises 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.”

Related and similar