Nektan revenues up 65% but FTDs drop

Nektan has announced a 64.6% year-on-year rise in net gaming revenues for the first quarter of its 2019 financial year, totalling £6.4m.

Revenues from cash wagers also rose sharply during the first quarter, rising by 40.7% year-on-year to £178.3m from a previous 2018 high of £126.7m.

However, the number of first time depositors dropped during the quarter by 2.9%, falling to 38,981 from a Q1 2018 figure of 40,148. The company attributed this drop to “an increasing focus on maximising player life time values which will improve profitability going forward for Nektan and its partners.”

Gary Shaw, interim CEO 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.”

During the quarter Nektan increased its existing client base to 143 global casino brands, growing its existing catalogue of games on its platform by 40% to more than 700 games. Its B2B business also reported strong growth, with revenues of £142,000 during Q1 FY2019 beating those accrued during Q1 2018 by more than 27%.

Shaw added: “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.”