Nektan enjoys 115% surge in gaming revenues

Mobile gaming provider Nektan has reported net gaming revenue of ?2.7m for the three months to 31 March, a total representing a 115% quarter-on-quarter growth.

Total cash stakes from players (i.e. turnover) were up 87% sequentially to ?56.21m, with first time depositors up 42% to 15,628.

“We are delivering significant growth and seeing strong momentum building across all key performance indicators in Europe, whilst we continue to make good progress on further reducing the cost base of the business,” Gary Shaw, Nektan interim CEO, said.

“We remain confident on the outlook for the full year.”

The results mark a positive development for the AIM-listed firm, after it reported losses of ?3.67m for the six months ended 31 December 2015. The supplier said at the time it would hit breakeven EBITDA by the end of its current financial year.

In the third quarter the firm signed 11 new partners and secured ?2.93m from a fundraising round, which it said would support growth in Europe.

Shaw also praised the success of Respin, the group’s US joint venture, which aims to link in-venue platforms in casinos to mobile play on smartphones.

He said the spin-off business has “merged the mobile and land-based worlds within the boundaries of regulation, driving both a disruptive and innovative product”.

Nektan share prices were volatile in early trading this morning, but up 4.5% at the time of writing.