SBC News Nektan details revenue growth and reduced losses in successful yearly results

Nektan details revenue growth and reduced losses in successful yearly results

Leading international gaming solutions and services provider Nektan plc has announced its audited final results for the year ended 30 June 2017, with all key performance indicators (KPIs) showing a marked improvement from the year previous.

Nektan also saw a decline in its losses, signifying a positive period and a firm step in the right direction.

Most notably, revenue growth rose by a massive 124%, up to £13.3 million compared to £5.9 million the previous year. Furthermore, there was a 130% rise in net gaming revenue (up to £13.1 million from £5.7 million); 130,105 new first time depositing players (FTDs) compared to 49,176 last year; and total cash wagering up by 157% to £390.3 million (£151.9 million in 2016).

The firm was also boosted by both reduced losses in adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) – down from £5.7 million to £3.4 million – and reduced operating losses – down to £4.6 million from £8.3 million the year previous.  

Looking towards 2018, Nektan can take further encouragement from the opening of a a further 19 casinos – taking the total to 94 from 52 partners – and Nektan’s B2B platform Evolve Lite that went live in November 2017, opening up new revenue streams for the company.

Gary Shaw, Interim Chief Executive Officer of Nektan, said: “In Europe, Nektan will continue to focus on its core managed solutions business offering, whilst leveraging the infrastructure and capability to roll out its B2B business.  In the US, we continue to see a number of opportunities to use Evolve with the mobile in venue casino system, in what is likely to be one of the largest global mobile gaming markets.

“We have just signed our first platform deal and are focusing on leveraging our language capability, which we have built within the software, so that we would expect to be live in the US, Europe and Asia in our current financial year. As we have only one business line covering our central technology cost for Managed Solutions Europe, we expect to see significant margin uplift as we turn on and develop these new revenue lines.

“We also would expect a similar growth trajectory to our European Managed Solutions business giving the business material scalability as we utilise the same software platform across additional continents, whilst at the same time being highly relevant for the localised marketplaces.

“The Company is well placed to maximise revenue and margin growth across both North American, Europe and additional geographies.”

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