Nektan reports stronger growth in first quarter of its fiscal year
News on 3 Oct 2018
News on 3 Oct 2018
The Gibraltar-based international gambling technology and services platform provider Nektan plc has claimed another record quarter for the first three months of the financial year ending 30 June 2019 (Q1 FY19).
The company reported stronger than expected growth with the following highlights:
* Record Q1-2019 NGR and Cash Wagering figures, during the traditionally quieter summer months; at GBP 6.4 million NGR was up 12.6 percent vs. Q4-2018 and up 64,6 percent on a y-o-y basis;
* First time depositors fell 10 percent to 38,981 compared with the preceding quarter, and was down 2.9 percent on a y-o-y basis. The decline is attributed to an increasing focus on maximising player life time values which will improve profitability going forward for Nektan and its partners;
* Cash wagering at GBP 178.3 million was up 9.4 percent vs the previous quarter and up 40.7 percent on a y-o-y basis;
* Management reports that the company remains on course to break even in EBITDA terms by the end of FY19;
* Nektan launched multiple new sites and is now delivering gaming content to a record number of 143 global casino brands in Q1 FY19;
* The Group’s pipeline of additional casino brands from both existing and new UK and international partners remains strong;
* The company’s platform has over 700 games (over 500 in Q4 FY18, an increase of 40 percent) from a total of 27 games providers;
* In B2B terms, Nektan reports significant growth potential and higher margin, which in the past three quarters has provided quarter-on-quarter growth of 77 percent;
* The company currently has a total of 14 deals live globally compared with 12 in Q4 FY18;
* The first global platform deal with Tyche Digital now has 14 sites live from 10 operators and has experienced double digit month on month growth in Q1 FY19, albeit off a low base.
* In addition, there is a significant pipeline of further integrations expected over the coming months;
* 432 games are now live on E-Lite from a total of 13 games providers;
* In Q1 FY19, Nektan has completed back-end integration, regulatory approval and white label customisation with a major North American tier-one operator for launch in-venue in Q2 FY19;
* Metric Gaming’s full-service Race and Sports betting platform has now been integrated into the Evolve platform, giving Nektan a wider product offering in the US;
* Using its development team based in India, Nektan has completed the development of four third-party games for launch on Nektan’s Evolve platform in both the US, through its US brand Rapid Games, and in Europe;
* Following the recent US Supreme Court strike down of PASPA the Board is seeing significant interest in the US market, and continues to review its options in the US, which include expressions of interest to invest directly into the US business unit, with the objective of reducing the cash burden on Nektan within the next two quarters.
Gary Shaw, Interim Chief Executive Officer of Nektan, said:
“Q1 FY19 has been very strong and we have seen accelerating growth momentum across all business lines. We are on course to be EBITDA positive in Europe by the end of this financial year. Since becoming a public company in 2014, Nektan has seen only one quarter-on-quarter decline in revenue, which was during this usually quieter period of activity in the same period last year, so we are very encouraged to see such a positive quarter and expect this success to continue.
“We will continue to build our portfolio of content. We are adding more cutting-edge content and channelling this not only to more partners, but bigger partners too. Nektan is live in more jurisdictions and languages than ever before and, in particular, our Asia business, is scaling substantially as our technology is applied by more partners.
“In addition, our North America division is making progress and is due to go live shortly with a tier-one operator. We are positioned to take advantage of the opening up of the sector in the United States with a pipeline of upcoming opportunities.”
News on 3 Oct 2018
The Gibraltar-based international gambling technology and services platform provider Nektan plc has claimed another record quarter for the first three months of the financial year ending 30 June 2019 (Q1 FY19).
The company reported stronger than expected growth with the following highlights:
* Record Q1-2019 NGR and Cash Wagering figures, during the traditionally quieter summer months; at GBP 6.4 million NGR was up 12.6 percent vs. Q4-2018 and up 64,6 percent on a y-o-y basis;
* First time depositors fell 10 percent to 38,981 compared with the preceding quarter, and was down 2.9 percent on a y-o-y basis. The decline is attributed to an increasing focus on maximising player life time values which will improve profitability going forward for Nektan and its partners;
* Cash wagering at GBP 178.3 million was up 9.4 percent vs the previous quarter and up 40.7 percent on a y-o-y basis;
* Management reports that the company remains on course to break even in EBITDA terms by the end of FY19;
* Nektan launched multiple new sites and is now delivering gaming content to a record number of 143 global casino brands in Q1 FY19;
* The Group’s pipeline of additional casino brands from both existing and new UK and international partners remains strong;
* The company’s platform has over 700 games (over 500 in Q4 FY18, an increase of 40 percent) from a total of 27 games providers;
* In B2B terms, Nektan reports significant growth potential and higher margin, which in the past three quarters has provided quarter-on-quarter growth of 77 percent;
* The company currently has a total of 14 deals live globally compared with 12 in Q4 FY18;
* The first global platform deal with Tyche Digital now has 14 sites live from 10 operators and has experienced double digit month on month growth in Q1 FY19, albeit off a low base.
* In addition, there is a significant pipeline of further integrations expected over the coming months;
* 432 games are now live on E-Lite from a total of 13 games providers;
* In Q1 FY19, Nektan has completed back-end integration, regulatory approval and white label customisation with a major North American tier-one operator for launch in-venue in Q2 FY19;
* Metric Gaming’s full-service Race and Sports betting platform has now been integrated into the Evolve platform, giving Nektan a wider product offering in the US;
* Using its development team based in India, Nektan has completed the development of four third-party games for launch on Nektan’s Evolve platform in both the US, through its US brand Rapid Games, and in Europe;
* Following the recent US Supreme Court strike down of PASPA the Board is seeing significant interest in the US market, and continues to review its options in the US, which include expressions of interest to invest directly into the US business unit, with the objective of reducing the cash burden on Nektan within the next two quarters.
Gary Shaw, Interim Chief Executive Officer of Nektan, said:
“Q1 FY19 has been very strong and we have seen accelerating growth momentum across all business lines. We are on course to be EBITDA positive in Europe by the end of this financial year. Since becoming a public company in 2014, Nektan has seen only one quarter-on-quarter decline in revenue, which was during this usually quieter period of activity in the same period last year, so we are very encouraged to see such a positive quarter and expect this success to continue.
“We will continue to build our portfolio of content. We are adding more cutting-edge content and channelling this not only to more partners, but bigger partners too. Nektan is live in more jurisdictions and languages than ever before and, in particular, our Asia business, is scaling substantially as our technology is applied by more partners.
“In addition, our North America division is making progress and is due to go live shortly with a tier-one operator. We are positioned to take advantage of the opening up of the sector in the United States with a pipeline of upcoming opportunities.”
