Gibraltar – Nektan enjoying record revenue growth in B2BBy Phil - 5 April 2019
Nektan saw its revenue rise 5.9 per cent for the third quarter of its financial year ending 30 June with the B2B division reporting record growth and revenues.
The B2C experienced a decline in KPIs, due to a number of factors impacting FTDs and deposits, including seasonality, increased UK regulation around player marketing and verifications and a delay in the granting of the company’s Swedish operator licence.
B2B revenue increased 75 per cent to £0.35m in the quarter with 10 partners currently live and further distribution deals signed with seven new partners, including the recently announced deal with Bede. All are due to go live in Q4 FY19. The company has also signed deals with E-Lite platform and content distribution deal signed with Addison Global’s MoPlay.
The Board expects trading to improve in the next quarter due to the continued growth and breadth of the company’s casino network.
Nektan’s games content is increasing across both B2C and B2B with the total number of available games increasing to 834 from a total of 38 games providers. Content aggregation deals signed with leading studios Leander and Rock Salt.
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 headlines 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. As a result of that deal, the other inter-conditional transactions, namely the fund raising and CLN conversion, are due to complete as well, putting Nektan in a very strong position to capitalise on our global growth prospects.”