Nektan revenues up 48% in H1 FY19
Company EBITDA breaks even as European business grows
B2B egaming provider Nektan announced a 48% year-on-year rise in gaming revenues during the first half of its 2019 financial year.
The supplier confirmed unaudited gaming revenues of £13m for the six months ending 31 December 2018, surpassing the £8.8m accrued during the prior reporting period.
Company adjusted EBITDA grew from a £916,000 loss in H1 FY18 to a positive adjusted EBITDA of £336,000 during H1 FY19. Nektan attributed this breakthrough to “increased revenues and resulting business efficiencies.”
Nektan CEO Lucy Buckley hailed the achievement of an EBITDA break-even as a “key milestone” for the business, adding that its key focus for the remaining half of FY19 is “on maintaining and improving profitability”.
Following this revenue increase, operating losses and losses before taxation narrowed during the period.
The number of FTDs remained stable during H119 at 75,334, increasing from the 74,755 reported during H1 FY18. Cash wagering in Nektan’s B2C business increased 36% year-on-year to £346.2m up from the £254.5m reported during H1 FY18.
As a way of refinancing the company, Nektan agreed the placement of shares, debt conversion and partial sale of its US business Respin and has confirmed “strong” demand for shares in the business, which currently exceeds the £1.5m required. Nektan has said it aims to sell the majority of the business by 30 April.
Despite perceptibly exiting the market, Buckley reaffirmed her commitment to the US market and Nektan’s US facing mobile casino product.
Buckley added the proposed sale would be “a major contributor to our profitability plan by removing funding for the US going forward” but would also allow the business to retain a material stake in the emerging US market.
Buckley also confirmed that Nektan CFO Patrick Sinclair has left the company with Ken Duncan assuming the position on an interim basis.