Gibraltar-headquartered provider of mobile solutions and related services for the international gambling industry Nektan plc today reported its results for the fiscal year ended 30 June 2016 and provided a trading update for the three months ended 30 September 2016.
The company posted a 1,402% increase in full-year net gaming revenue. It amounted to £5.8 million, up from £528,000 generated in 2015. However, the company saw adjusted EBITDA drop further during the past fiscal year to a negative of £5.7 million. Operating loss totalled £8.3 million, compared to £7.2 million for the twelve months ended 30 June 2015.
Loss after taxation also widened during the reviewed financial year to reach £10.5 million. Loss after taxation of £8.1 million was reported for the same twelve months in 2015.
During the fiscal year ended 30 June, Nektan saw growth momentum improve significantly. The company said that its performance was boosted by its expanded customer base. The company drew 48,723 first-time depositing players during the period in review, up considerably from 5,461 such players during the previous financial year.
Nektan processed a total of 39,589,325 transactions in the reported twelve months, both spins and bets, and from as many as 50,805 cash players.
The company enriched its casino network with 29 new partners. Nektan said that the deals were aimed at securing constant revenue growth. All of the new partners were ones that added value to the whole casino network through heavy player acquisition and regular product offering improvements.
Europe and the US remained Nektan’s core markets during the reviewed fiscal year. It pointed out that efforts had been invested for player acquisition and retention in the two markets as well as for increasing players life time values.
As previously reported, Nektan had joined forces with US-based gambling company Spin Games to form the Respin LLC entity. The business was said to have continued its innovation during the fiscal year ended 30 June. It rolled out its Rapid Games mobile solution that allows casino players to play on their mobile devices while at a gambling venue of their choice.
As mentioned above, Nektan also provided a trading update for the first quarter of the current fiscal year. Net gaming revenue increased 295% year-on-year to reach £2.1 million. A total of 14,037 first-time depositors registered with the company’s products during the three months ended 30 September.
Commenting on his company’s performance, CEO Leigh Nissim said that Nektan’s European business will remain focused on leveraging its momentum and the further optimisation of its casino network. In the US, the provider will be looking to extend its footprint in tribal casinos through the installation of their mobile product, Mr. Nissim further explained.
Investment in the Evolve proprietary platform will continue, as the solution powers both Nektan’s European and US operations. Thus, the company hopes to secure maximised revenue for its two divisions and value for shareholders.
- Author
Olivia Cole
