Nektan reports record quarter and full year trading across B2C and B2B

International B2B and white label provider Nektan plc has released its unaudited figures for the three months and year ended 30 June 2018 (Q4 FY18 and FY18), reporting the following highlights:

* Strong growth, with record NGR in Q4 FY18 of GBP 5.7 million, increasing by 10.9 percent compared to Q3 FY18 and by 36.7 percent versus Q4 FY17;

* Full year NGR was GBP 19.4 million, increasing by 48.1 percent y-o-y;

* FTDs continued to grow strongly to 43,289, up 14.3 percent versus the previous quarter and by 20.4 percent year on year;

* Cash wagering of GBP 162.9 million in Q4 FY18 up by 14.3 percent versus Q3 FY18 and was GBP 559.8 million for FY18 – up 43.4 percent versus FY17;

* The company launched 13 new sites and gained four new partners in Q4 FY18. It is now operating with a total of 113 brands from 55 partners, and has a strong pipeline of new brands from both existing and new partners to be launched during the current quarter, with growth expected from the UK and internationally, the latter being an important part of Nektan’s strategy going forward.

* Nektan’s platform has over 500 games from 24 games providers.

Management led by CEO Gary Shaw reported that the B2B side of the business is now a significant element in Nektan’s global strategy, and is being achieved through the company’s Evolve platform as the company moves towards EBITDA break-even in Europe, which is expected during FY19.

Nektan generated GBP 105,000 in revenue from the B2B business during Q4 FY18 versus GBP 83,000 in Q3 FY18 with a total of 12 deals now live globally versus 9 in Q3 FY18.

The first global platform deal with Tyche Digital now has four partners live and a significant pipeline of further integrations expected over the coming months, and Nektan has made its proprietary remote gaming server available to third party games studios who can integrate their content directly onto it.

The Group is in discussions with a number of industry partners to integrate E-Lite on a platform to platform basis in the next two quarters which would be an additional global revenue stream.

Nektan’s US subsidiary, Rapid Games has continued to grow its game portfolios and will go live with its second northern Californian on-premise mobile gaming partner during July 2018. The addition of Metric Gaming’s full service Race and Sports offering to Rapid’s platform is driving significant interest from new markets.

The group is currently reviewing its strategic options in the US and has had a number of expressions of interest to invest in Rapid.

Gary Shaw, Interim Chief Executive Officer of Nektan, said: “We see the business continuing to strengthen further and growth opportunities within both existing markets and, most encouragingly, in the rapidly accelerating demand for our technology from international partners, especially in Asia. In addition, with our licensed US mobile gaming platform, we are very well placed to take advantage of the huge opportunity presented by the opening up of the sector in the United States.

“Nektan is currently live in 37 countries across Europe, Asia and North America.  We have developed from a UK-centric business into a global technology company, delivering to our partners operational gaming capability with speed and flexibility across multiple markets.”

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