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Nektan records loss but takes growth momentum into Q2

Nektan
Leigh Nissim, Nektan

Nektan confirmed a Net Gaming Revenue (NGR) increase of 295% and disclosed plans to raise up to £2.275m as part of its Q1 trading update.

The results for the quarter ended September 2016 showed NGR of £2.1m, 14,037 first-time depositors and cash wagering of £65.9m, a figure up 328% from last year’s £15.4m.

The company has already received interest from investors for the proposed fundraising of £2.275m to provide near term working capital by way of subscriptions for new ordinary shares.

Leigh Nissim, Nektan Chief Executive Officer, said: “In Europe, Nektan continues to focus on accelerating momentum and optimising its casino network, with the addition of new partners, high 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-premise 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.”

For the year ending June 30 2016, Nektan recorded NGR of £5.783m, processed 39,589,325 bets or spins from 50,805 cash players, and launched 29 new partners to its casino network on multi-year contracts.

However, the adjusted LBIDTA (losses before interest income and expense, income taxes, depreciation and amortisation) was up to £5.744m from £5.109m in 2015, contributing to a loss for the year, after taxation, of £10.846m. The basic loss per share has risen from 39.6p to 44.8p.

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