TIDMNKTN
RNS Number : 5028T
Nektan PLC
04 July 2018
4 July 2018
NEKTAN PLC
("Nektan", the "Company" or the "Group")
Q4 Trading Update
RECORD QUARTER AND FULL YEAR TRADING ACROSS B2C AND B2B
Nektan plc (AIM: NKTN), an international B2B and white label
gaming software and services provider, announces its trading and
business update for the three months and year ended 30 June 2018
(Q4 FY18 and FY18). The figures stated below are all unaudited.
Managed Gaming Solutions (Europe)
Q4 FY18 Q3 FY18 Change* Q4 FY17 Change* FY18 FY17 Change*
----------------------- ---------- ---------- -------- ---------- -------- ---------- ---------- --------
Net Gaming Revenue
("NGR") GBP5.7m GBP5.1m 10.9% GBP4.2m 36.7% GBP19.4m GBP13.1m 48.1%
----------------------- ---------- ---------- -------- ---------- -------- ---------- ---------- --------
First Time Depositors
("FTDs") 43,289 36,359 18.5% 42,425 1.5% 156,703 130,105 20.4%
----------------------- ---------- ---------- -------- ---------- -------- ---------- ---------- --------
Cash Wagering GBP162.9m GBP142.4m 14.3% GBP120.5m 34.0% GBP559.8m GBP390.3m 43.4%
----------------------- ---------- ---------- -------- ---------- -------- ---------- ---------- --------
*calculated using underlying, non-rounded figures
-- Nektan continued its momentum and delivered very strong
growth, with record NGR in Q4 FY18 of GBP5.7m, increasing by 10.9%
compared to Q3 FY18 and by 36.7% versus Q4 FY17.
-- This final quarter performance ensured that the full year NGR
was GBP19.4m, increasing by 48.1% from GBP13.1m the previous
year.
-- FTDs continued to grow strongly to 43,289, increasing by
14.3% versus the previous quarter and by 20.4% year on year.
-- Cash wagering of GBP162.9m in Q4 FY18 increased by 14.3%
versus Q3 FY18 and was GBP559.8m for FY18 up 43.4% versus FY17.
-- Nektan launched 13 new sites and gained four new partners in
Q4 FY18. The Company is now operating with a total of 113 brands
from 55 partners. The Group 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 as well as
internationally, the latter being an important part of Nektan's
strategy going forward.
-- Nektan's platform has over 500 games from 24 games providers,
underlining the diversified nature of Nektan's games portfolio.
B2B
-- The B2B business is becoming a significant part of Nektan's
future global strategy which is being achieved by leveraging the
Evolve platform into new, significantly higher margin business
lines as the Company moves towards EBITDA break-even in Europe,
which is expected during FY19.
-- Nektan generated GBP105k in revenue from the B2B business
during Q4 FY18 versus GBP83k 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 ("Tyche")
now has four partners live and a significant pipeline of further
integrations expected over the coming months, where we are
benefiting from our speed of integration and breadth of content
offering.
-- Nektan has made its proprietary remote gaming server ("RGS")
available to third party games studios who can integrate their
content directly onto it. This strategic move has created an
opportunity to work with leading industry partners to produce
premium content with higher margins.
-- 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 for the Group.
On-Premise Gaming (North America)
-- Nektan's US subsidiary, Rapid Games(TM) ("Rapid") 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.
-- Nektan is currently reviewing its strategic options in the US
and has had a number of expressions of interest to invest in Rapid.
The Board will provide an update in due course.
Gary Shaw, Interim Chief Executive Officer of Nektan, said:
"We are delighted with Nektan's continuing revenue growth,
increasing 48% in the year to 30 June 2018. We expect to continue
to build on this strong momentum in the year ahead.
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.
We look forward to announcing further progress in the coming
months."
For further information on the Group, please contact:
Nektan
Gary Shaw, Interim Chief Executive Officer
Patrick Sinclair, Chief Financial Officer +44 20 3463 8735
Stockdale Securities Limited
Tom Griffiths / Ed Thomas +44 20 7601 6100
Newgate (PR Adviser) +44 20 7680 6550 / +44 7747
James Benjamin 113 930
Email: nektan@newgatecomms.com
Further information on Nektan can be found on the Group's
website at www.nektan.com
About Nektan:
Nektan is an international B2B and white label gaming software
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, 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.
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END
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