Nektan report record total revenues in Q2 trading update

Gaming technology platform and services provider Nektan plc reported record unaudited total revenues in its second quarter trading update.

Key performance indictors include:

Total Gaming Revenue of GBP 8.6 million, up 83 percent y-o-y and 28.4 percent compared to the previous quarter.

Cash Wagering was GBP 222.5 million, up 74 percent year over year and 22 percent on the previous quarter.

Growth was driven primarily by a significant increase in the number of unique players on Netktan’s B2B platform and four new partners going live.

Nektan said it expects EBITDA to break even by the end of its Full Year, June 30 2019.

Excluding the Company’s US division, the combination of both its B2C and B2B divisions has seen this latest quarter deliver stronger than expected growth, leading to record quarterly revenues.

“The higher margin B2B division has been a particular standout with significant increases in commercial partnerships, player numbers and cash wagering, with the highlight being Nektan’s new partnership with global tier-one online gaming company, BetVictor,” the update reads.

Split by sector, Nektan’s B2C White Label Managed Casino Solutions Net Gaming Revenue dipped 3.1 percent to reach GBP 6.2 million compared to the previous quarter but grew 31.9 percent y-o-y.  The decline was attributed to higher than expected player wins and bonusing.

First time depositers declined 6.8 percent compared to the first quarter and 1.6 percent y-o-y.  Cash wagering dropped 5.8 percent to reach GBP 168 million over the previous quarter but growth of 31.5 percent was reported y-o-y.

In an update on Nektan’s B2B platform and distribution channel, gross gaming revenues reached GBP 2.4 million, up 700 percent on the previous quarter.  Unique players grew 1811 percent to reach 77,961 and cash wagering amounted to GBP 54.5 million, up 1229 percent over the previous quarter.

Nektan is in advanced talks regarding the sale of 57.5 percent of the issued share capital of its US subsidiary, Respin, for a total consideration of GBP 2.0 million in cash as well as the injection of GBP 300,000 in working capital to Respin by the investing entity. These developments are expected to be concluded before the end of Q3 FY19.

Lucy Buckley, Chief Executive Officer of Nektan, said:

“This record-breaking quarter for the Group has not only highlighted that we have made significant enhancements to our technology, but we are becoming a firmly established business that is on track to be profitable in our core European business by the end of this financial year ending 30 June 2019.

Looking back at this quarter and ahead, we are very excited about the size of partners we are now attracting. Our BetVictor contract win with this tier-one operator is a landmark for Nektan and we are proud to have them believe in the breadth and depth of our offering. The B2B figures continue to demonstrate the huge potential that that division has in fuelling our growth going forward.

Another significant highlight from the end of the last quarter was the announcement of potential external investment in our US business. Once completed, we believe these developments will put Nektan in its strongest and most secure position to date.”

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