Nektan has announced its unaudited interim results for the six months ended 31 December 2018, with the gaming technology and services provider breaking even on EBITDA after solid growth in Europe and new business operations emerging globally.
The firm’s marketing, partner and affiliate costs increased from £4.5 million (51% of revenue) to £6.1 million (47% of revenue), demonstrating efficiencies as the business grows. Administrative costs decreased from £2.1 million (24% of revenue), to £2.1 million (16% of revenue).
Other highlights included the launch of new white label casino partners, notably the Shipley Brothers, taking the number of fully-managed global casino brands to a record 152 across Europe; Lucy Buckley joining as CEO on 3rd December; and a higher margin B2B division established as a ‘significant global revenue driver’ for the business with ten partners live by 31 December.
Buckley said: “Achieving EBITDA break-even during the period is a key milestone for Nektan and our key focus for the remainder of FY19 is on maintaining and improving profitability. EBITDA break-even was reached due to both increased revenues and operational efficiencies.
“Whilst we believe in our US mobile casino product, and are excited about the macro trends in the market, the proposed sale of the majority shareholding of our US subsidiary is a major contributor to our profitability plan by removing Nektan funding for the US going forward, but retaining a material stake in the emerging US market.
“In Europe, Asia and Africa, our emergent B2B division is generating new high margin revenue by licensing our proprietary technology to leading operators. We are successfully attracting major casino and gaming partners as evidenced by our BetVictor launch in October 2018 and post-period end contract win with MoPlay, announced in March 2019. This growth was only achievable with the firmly established B2C and white label network which grew to a record total of 152 casino sites during the period.
“All this is underpinned by our cutting-edge proprietary mobile casino technology and agility, allowing us to attract new partners, get live quicker and optimise their revenues with our advanced operational and promotional tools. Nektan is in a strong position to build on the success of the first half of FY19 and we look forward to providing further updates.”