TIDMNKTN
RNS Number : 6063T
Nektan PLC
09 January 2017
9 January 2017
NEKTAN PLC
("Nektan", the "Company" or the "Group")
Trading update for Quarter Two ended 31 December 2016
GROWTH CONTINUING TO ACCELERATE WITH NET GAMING REVENUE UP 71%
in Q2
Nektan plc (AIM: NKTN), a leading international B2B gaming
solutions and services provider, provides an update on trading for
the three months ended 31 December 2016.
Key highlights
-- Significant growth across all key performance indicators
("KPIs") during the Quarter ending 31 December 2016 with positive
growth momentum continuing to accelerate:
FY17 FY16
------------------------------ ------------------
Q2 Q1 Change Q2 Change
------------------------ ---------- --------- ------- --------- -------
Net Gaming Revenue
(NGR) GBP3.6m GBP2.1m +71% GBP1.0m +260%
------------------------ ---------- --------- ------- --------- -------
First Time Depositors 35,215 14,037 +151% 11,019 +220%
------------------------ ---------- --------- ------- --------- -------
Cash Wagering GBP106.7m GBP65.9m +62% GBP31.9m +235%
------------------------ ---------- --------- ------- --------- -------
Transactions processed
(bets or spins) 122.7m 61.2m +100% 40.0m +207%
------------------------ ---------- --------- ------- --------- -------
-- On 21 December, the Company increased its ownership of Respin
Inc, the US focused Class II mobile on-premise solution provider,
to 85%, transitioning the business to an operating subsidiary of
Nektan from a joint venture
-- Further product improvements in Q2 in Europe:
o Introduction of new casino games from BluePrint Gaming,
Gamevy, DC Comics and Microgaming
o Upgrade of internal Content Management System, Gaming site
load speeds improved by 40% and deeper platform bonus features
which offer an improved player experience
Proposed equity fundraising as announced on 29 December 2016
-- The Company has received commitments to raise GBP2.275
million gross from new and existing shareholders including certain
directors (the "Subscription") through the proposed issuance of
8,272,726 new Ordinary Shares to provide near term working capital.
The Subscription is subject to the passing of the resolutions at
the Company's Annual General Meeting on 27 January 2017.
-- In addition, the board are making an offer to qualifying
shareholders to subscribe for up to 1,818,182 new ordinary shares
with a value of up to GBP500,000.
-- Both the Subscription and the Offer will be priced at 27.5
pence (a discount of 15 per cent. to the mid-market share price at
the close on 28 December 2016) and will include a warrant that will
reprice the investors' investment price to the issue price of any
lower fundraising in the next six months.
-- The funds being raised from the Subscription will provide
near term working capital but it is expected that long term funding
will be required by the Company and, without undertaking
alternative corporate transactions, the Company will need to
undertake an additional fundraising.
Leigh Nissim, Chief Executive Officer, said:
"Nektan continues to make positive progress in our businesses in
Europe and the US, powered by our proprietary core platform,
Evolve, helping the Company to strengthen its position as an
international gaming provider, offering solutions and services that
are fresh, high quality and tangibly different from other
suppliers.
In Europe, our trading momentum in Q2 has been excellent,
largely as a result of product and service improvements and the
addition of engaging casino games and of new high quality casino
partners. We continue to focus on optimising our casino network to
deliver profitable growth.
Whilst in the US, owning more of our North American business,
Respin, brings the business closer to the Group and helps better
leverage the products and assets of both businesses for mutual
success."
For further information on the Group, please contact:
Nektan via Newgate below
Leigh Nissim, Chief Executive
Zeus Capital Limited (Nominated Adviser Tel: +44 20 3829 5000
& Broker)
Giles Balleny, Nicholas How (Corporate Finance)
Newgate (PR Adviser) Tel: +44 20 7680 6521/
James Benjamin + 44 7747 113 930
Em: nektan@newgatecomms.com
Further information on Nektan can be found on the Group's
website at www.nektan.com
About Nektan:
Nektan is a leading international B2B mobile gaming solutions
and services provider, operating in the regulated, interactive real
money gaming (RMG) gaming space, delivering original and innovative
solutions to commercial organisations that have established online
audiences.
Nektan's full end-to-end technology platform, Evolve, simplifies
and supports the route to mobile and desktop gaming revenues,
managing the full customer experience and back-office operations,
allowing commercial partners to focus on marketing the product to
their consumers.
Nektan's US operating subsidiary in partnership with Spin Games,
Respin LLC, provides US land-based casinos with in-venue mobile
gaming solutions which allow operators to add mobile technology and
content to their existing offerings, with products accessible to
players across both cabinets and mobile devices inside the casinos.
Respin has a strong intellectual property portfolio including game
patents for Rapid Games(TM) (on-property mobile entertainment), and
other captivating concepts and brands.
Nektan is headquartered in Gibraltar, regulated by the Gibraltar
Licensing Authority and the UK Gambling Commission, as well as in
the Irish market and maintains sales and customer support
operations in its two primary geographical targets, Europe and
North America. The proprietary Evolve technology is developed and
maintained by a talented and experienced team of employees from
Nektan's Indian office.
Nektan plc was admitted to the AIM market of the London Stock
Exchange in November 2014.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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