TIDMNKTN
RNS Number : 7531C
Nektan PLC
03 October 2018
3 October 2018
NEKTAN PLC
("Nektan", the "Company" or the "Group")
Q1 TRADING UPDATE - RECORD QUARTERLY REVENUES
Nektan plc (AIM: NKTN), an international gaming technology
platform and services provider, is pleased to announce another
record quarter for the first three months of the financial year
ending 30 June 2019 (Q1 FY19).
Nektan delivers premium and compliant gaming content to gaming
sites worldwide, via its proprietary technology platforms Evolve
(B2C) and E-Lite (B2B). This latest quarter has delivered stronger
than expected growth leading to record quarterly revenues.
The figures stated below are all unaudited.
Managed Gaming Solutions (Europe)
Q1 FY19 Q4 FY18 Change* Q1 FY18 Change*
-------------------------- ---------- ---------- -------- ---------- --------
Net Gaming Revenue (NGR) GBP6.4m GBP5.7m 12.6% GBP3.9m 64.6%
-------------------------- ---------- ---------- -------- ---------- --------
First Time Depositors
(FTDs) 38,981 43,289 -10.0% 40,148 -2.9%
-------------------------- ---------- ---------- -------- ---------- --------
Cash Wagering GBP178.3m GBP162.9m 9.4% GBP126.7m 40.7%
---------- ---------- -------- ---------- --------
*calculated using underlying, non-rounded figures
Highlights
-- KPIs Update:
o In Q1 FY19 Nektan delivered record NGR and Cash Wagering
figures, during the summer months, traditionally a quieter time for
gaming activity, especially one that included the World Cup.
o The Group's strong growth in NGR has continued, growing 12.6%
in Q1 FY19 versus Q4 FY18 and 64.6% versus Q1 FY18.
o The dip in FTDs during Q1 FY19 is due to an increasing focus
on maximising player life time values which will improve
profitability going forward for Nektan and its partners.
-- Gaming Distribution Update:
o Nektan launched multiple new sites and is now delivering
gaming content to a record number of 143 global casino brands in Q1
FY19.
o The Group's pipeline of additional casino brands from both
existing and new UK and international partners remains strong.
-- Gaming Content Update:
o Nektan's platform has over 700 games (over 500 in Q4 FY18, an
increase of 40%) from a total of 27 games providers, underlining
the diversified nature of Nektan's large gaming content
portfolio.
-- Nektan remains on course to become EBITDA break-even in Europe by the end of FY19.
B2B
-- As previously reported, via the E-Lite platform, Nektan's B2B
business is seen as an area of significant growth potential and
higher margin, which in the past three quarters has provided
quarter-on-quarter growth of 77%, 27% with Q1 FY19 delivering
revenue of GBP142k, growth of 35% versus GBP105k in Q4 FY18.
-- Nektan now has a total of 14 deals live globally compared with 12 in Q4 FY18.
-- The first global platform deal with Tyche Digital ("Tyche")
now has 14 sites live from 10 operators and has experienced double
digit month on month growth in Q1 FY19, albeit off a low base. In
addition, there is a significant pipeline of further integrations
expected over the coming months, where Nektan is benefiting from
its speed of integration and breadth of premium content and games
offering.
-- 432 games are now live on E-Lite from a total of 13 games providers.
North America
-- In Q1 FY19, Nektan has completed back-end integration,
regulatory approval and white label customisation with a major
tier-one operator for launch in-venue in Q2 FY19.
-- Metric Gaming's full-service Race and Sports betting platform
has now been integrated into the Evolve platform, giving Nektan a
wider product offering in the US.
-- Using its development team based in India, Nektan has
completed the development of four third-party games for launch on
Nektan's Evolve platform in both the US, through its US brand Rapid
Games, and in Europe.
-- With the recent Supreme Court Professional and Amateur Sports
Protection Act ("PASPA") ruling, the Board is seeing significant
interest in the US market. The Board continues to review its
options in the US, which include expressions of interest to invest
directly into the US business unit, with the objective of reducing
the cash burden on Nektan within the next two quarters.
Gary Shaw, Interim Chief Executive Officer of Nektan, said:
"Q1 FY19 has been very strong and we have seen accelerating
growth momentum across all business lines. We are on course to be
EBITDA positive in Europe by the end of this financial year. Since
becoming a public company in 2014, Nektan has seen only one
quarter-on-quarter decline in revenue, which was during this
usually quieter period of activity in the same period last year, so
we are very encouraged to see such a positive quarter and expect
this success to continue.
Given the past few quarters of continual expansion in content
provision and our significant build-up of global partnerships, we
are now within striking distance of our ambition to be the dominant
provider of premium gaming content in the industry. We will
continue to build our portfolio of content which, combined with
speed of content delivery into partners' live gaming sites
globally, makes Nektan's offering a very attractive proposition. We
are adding more cutting-edge content and channelling this not only
to more partners, but bigger partners too. Nektan is live in more
jurisdictions and languages than ever before and, in particular,
our Asia business, is scaling substantially as our technology is
applied by more partners.
We are very confident that Nektan is in an excellent position to
capitalise on the solid technological foundation we have built. Our
B2B division in particular is bringing a wealth of international
opportunities from tier-one partners. In addition, our North
America division is making progress and is due to go live shortly
with a tier-one operator. We are positioned to take advantage of
the opening up of the sector in the United States with a pipeline
of upcoming opportunities."
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 (Nominated Advisor
and Joint Broker)
Tom Griffiths / Ed Thomas +44 20 7601 6100
Smaller Company Capital Limited (Joint Broker)
Rupert Williams / Jeremy Woodgate +44 20 3651 2911
Nominis Advisory (PR Adviser) +44 7 881 625 098
Angus Campbell Email: angus@nominis.co
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) 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 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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