Nektan reports “record growth and revenues” in Q3 trading update
Gaming technology platform and services supplier, Nektan, has reported “record growth and revenues” for its B2B division in its trading update for the third quarter of its financial year ending 30 June 2019 (Q3 FY19).
In the trading update, Nektan has reported that its current growth trajectory remains on track to break-even for the financial year, detailing that the Executive Board expects trading to improve in the next financial quarter.
Nektan has attributed its Q3 growth to its expansion efforts and content aggregation agreements. Having signed new deals with leading studios Leander and Rock Salt, the group has reported a 5.9 per cent growth in revenues for the financial quarter.
Lucy Buckley, Chief Executive Officer of Nektan, said: “Q3 has been another record quarter of growth for our rapidly emerging B2B business. We continue to see strong demand for our award-winning casino technology as evidenced by the signing of 7 significant B2B partners during Q3 FY19.
“Having achieved EBITDA break-even in H1 of this financial year, a key achievement for Nektan, we remain on track to be break-even in FY19. As reported in our interim results announcement on 25 March 2019, whilst the headline revenue figures are slightly down on Q2, our growing portfolio of partners means that we do not expect a repeat of what was a quiet period by historical standards.
“Developments on the sale of our majority stake in the US division Respin are progressing and we expect to conclude this shortly and before 30 April 2019. This transaction will mean us maintaining a material stake in the emerging US market while removing the cash burn of this business..”
Nektan is awaiting the finalisation of the proposed sale of the majority shareholding of Nektan’s US subsidiary, Respin. The group is expected to enter into a binding contract for the sale ahead of 30 April 2019.
Its B2C division has struggled in Q3 FY19 after experiencing a decline in KPIs. This occurred as a result of a changing regulatory landscape surrounding player marketing and verifications and a delay in the granting of the Company’s Swedish operator licence.
Source: SBC News
