Nektan reports continued growth in Q3-2018

Gibraltar-based international B2B and white label gaming software and services provider, Nektan plc has posted a trading and business update for the three months ended 31 March 2018 (Q3 FY18), with the following unaudited highlights:

* Net Gaming revenue up 44.8 percent y-o-y at GBP 5.1 million;

* 5.4 percent y-o-y decline in First Time Depositors at 36,359;

* Cash wagering increase of 43.8 percent y-o-y;

* The company launched 18 new sites and five new partners in Q3 FY18, and now operates a total of 111 brands from 49 partners with plans to launch up to 20 new sites from both existing and new partners throughout the quarter ending 30 June 2018;

* A total of 73 games were launched in Q3 FY18, from three new as well as existing game vendors, further diversifying Nektan’s game portfolio.

Business-to business highlights included:

* Nektan generated GBP 83,000 in revenue from the B2B business during Q3 FY18 versus GBP 47,000 in Q2 FY18 with a total of nine deals now live globally;

* The first global platform deal with Tyche Digital is now live and generating revenue, opening up a significant pipeline of further opportunities;

* Nektan has a total of three deals now live in Asia and has completed 10 game vendor integrations delivering 250+ games on its Evolve Lite platform;

* The company expects to go live with its first Tier 1 operator in Asia during April 2018 and Tyche has signed a further four deals with significant Asian operators, which are expected to go live before Nektan’s financial year-end;

* During the last quarter, Nektan went live with a sheltering deal allowing games developer Magnet Gaming to operate in Gibraltar under Nektan’s licence. Further sheltering deals are expected to be approved and launched before the financial year-end;

On-Premise Gaming (North America)

* Nektan’s US subsidiary, Rapid Games, continues to generate significant interest in its on-premise solution and is expected to complete back-end system integration with a major commercial operator and to initiate trials with further multi-property groups during the current quarter;

* During the last quarter, Rapid Games completed the development of, and received certifications for, its latest product additions, which now include a third party Class III RGS, integrations with smart tables and tablets, a growing library of both Class II and III games and compliance with an expanding list of standards and regulations.

Gary Shaw, Interim Chief Executive Officer of Nektan, reported:

“Our results clearly demonstrate Nektan’s growing commercial and operational strength throughout international markets. The significant increase in net gaming revenues and cash wagering from our European white label business represents continuing growth momentum. This growth, at the same time as launching into new markets, underlines Nektan’s strength of management and technical capabilities. I am particularly pleased with our ability to expand, deploy and support in multiple geographic markets during this period from our stable, centralised cost base, delivering incremental revenue growth to the Group.

“We remain confident about our growth strategy and look forward to announcing further encouraging updates over the coming months.”