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Nektan Q1 Trading Update – Record Quarterly Revenues

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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.

 

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Managed Gaming Solutions (Europe)

  Q1 FY19 Q4 FY18 Change* Q1 FY18 Change*
Net Gaming Revenue (NGR) £6.4m £5.7m 12.6% £3.9m 64.6%
First Time Depositors (FTDs) 38,981 43,289 -10.0% 40,148 -2.9%
Cash Wagering £178.3m £162.9m 9.4% £126.7m 40.7%

 

*calculated using underlying, non-rounded figures

 

Highlights

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  • KPIs Update:
  • 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.
  • The Group’s strong growth in NGR has continued, growing 12.6% in Q1 FY19 versus Q4 FY18 and 64.6% versus Q1 FY18.
  • 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:
  • Nektan launched multiple new sites and is now delivering gaming content to a record number of 143 global casino brands in Q1 FY19.
  • The Group’s pipeline of additional casino brands from both existing and new UK and international partners remains strong.
  • Gaming Content Update:
  • 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 £142k, growth of 35% versus £105k 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.

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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

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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

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+44 20 3651 2911
   
Nominis Advisory (PR Adviser)

Angus Campbell

+44 7 881 625 098

Email: [email protected]

   

 

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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.

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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™ (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.

 


Source: European Gaming Media

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What makes Turbo Games’ provably fair games so special?

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A partnership between game developer Turbo Games and iGaming solution provider and aggregator Slotegrator began in November 2022 via the APIgrator game integration solution. Since then, the collaboration has been developing successfully — and now it’s time to analyze what made it successful.

Turbo Games has noticed how the new technologies spreading throughout the industry can work for the good of brand transparency and player loyalty: “We can already see how blockchain technology has made it possible to make betting checks more accessible to players. All you need is a blockchain-hash and a decoder service. We think we will continue to move in this direction. Many traditional online casinos do not offer the possibility to check the bet. Sooner or later we all have to come to this. Perhaps the development of artificial intelligence will help here, because we are already seeing its involvement in all spheres of human life.”

Turbo Games specializes in provably fair games. Provable fairness is a concept where players can verify their wins or losses using blockchain technology — the outcome of the game is dictated by a smart contract and is absolutely random, barring the possibility of any human involvement. Using cryptographic hashing algorithms, the gambling site and the player’s device both generate seeds (random strings of numbers). Players receive a key that allows them to check the results; if the results are the same as the game round they witnessed, it proves that there was no foul play.

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According to statistics from Turbo Games, the audience for provably fair games is mostly between 18 and 25 years old. However, there are also players aged 35-40 who prefer traditional games but would like to try something new, and have turned their attention to provably fair games.

There are good odds that the technology of provably fair games will become more popular, if not even commonplace, because it gives players a feeling of transparency and proves that the business is trustworthy without the need to search through dozens of reviews. Whereas many innovations in iGaming simply add entertainment, provable fairness addresses security concerns and reassures players that they’re not being exploited, which is invaluable.

Provably fair games are beneficial for both players and online casinos. Vadim Potapenko, Head of Sales at Turbo Games, comments: “It often happens that the users are not satisfied with the result, because gambling is not only about big wins, but also possible losses. By allowing them to check the fairness of a bet, we make life easier for platforms and players. Of course, this allows us to communicate with partners and users that we work honestly and that’s why they should trust our games.”

Ayvar Gabidullin, Business Development Manager at Slotegrator, adds that “this type of game is now becoming more and more popular and has great potential for both players and game providers in the future. On the part of the player, the advantage is that the player can always be sure that his game is fair and he can independently check any of his bets. And for the game provider, this also simplifies the process of implementing casino games, since now it will not be necessary to obtain the appropriate certificates from independent laboratories before launching new games, they can immediately enter the market with these games and where anyone can check the result and make sure that that there is no cheating with players. Many game providers are starting to look towards this type of game. And as far as I see, many operators are starting to think about adding these games.”

What do players in 2023 need? The iGaming industry is all about reputation and trust. Players have a huge number of platforms to choose from, making them pickier and pickier. There’s an abundance of forums where players leave reviews, so if players view a brand as untrustworthy, there are plenty of places they can share their opinion. Provable fairness not only stops that from happening, it provides evidence to the contrary, giving players something else to talk about.

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Slotegrator also recommends investing time and effort into localization and creating an effective and detailed marketing strategy — before trying provably fair technology players need to get to the platform, and there is no acquisition without marketing.

 

 ABOUT SLOTEGRATOR

Since 2012, Slotegrator has been one of the iGaming industry’s leading software and business solution providers for online casino and sportsbook operators.

The company’s main focus is software development and support for online casino platforms, as well as the integration of game content and payment systems.

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The company works with licensed game developers and offers a vast portfolio of casino content: slots, live casino games, poker, virtual sports, table games, lotteries, casual games, and data feeds for betting.

Slotegrator also provides consulting services in gambling license acquisition and business incorporation.

More information: https://slotegrator.pro/

 

ABOUT TURBO GAMES

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Turbo Games — a provably fair games provider that belongs to Turbo Stars company — has an ambitious goal to establish widespread recognition throughout the iGaming world. Even though it is young, the company consists of professionals who have been working on the brand for over five years and are even planning to introduce a new brand for a wider audience soon.

Turbo Games also works in Europe, India, and South Africa, where the company sees the most potential and expects the same “hype” as in Brazil.

The portfolio of Turbo Games consists of 21 titles, including well-known games like Mines, Crash X, DoubleRoll, Hi-Lo, and Plinko. The studio releases a game every month. However, not all games are developed from scratch. Wicket Blast and Spin Strike, the last two releases, are based on cricket and the Indian Premier League. Crash X remains the most popular fast game in the Turbo Games portfolio, and the studio reports that crash games enjoy stable levels of popularity. Overall, the main focus of the brand is provably fair games.

More information: https://turbogames.io/

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Games Factory Talents has teamed up with Nordic Game to bring you Nordic Game Talents.

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Looking to take your career to the next level in the games industry? Then, Nordic Game Talents is the place to be! Games Factory Talents has teamed up with Nordic Game to bring you Nordic Game Talents.

From Oct 27-29, the online and interactive event is dedicated to recruitment and career building in the creative & games industry within the Nordic region. The event empowers participants to be part of a bigger community and motivates them to explore new paths in achieving their career goals.

Hiring creative & games studios – Supercell, Funcom, Panzerdog, Tactile Games, Gamecan, Fingersoft, Dazzle Rocks, Redhill Games to name a few from the Nordic region will be participating in the event. These studios will share information on their latest projects, work culture and what it takes to be part of their team. The individual games associations from Finland, Denmark, Sweden, Norway and Estonia will share insights through live sessions on the booming games industry in their respective countries. Career development topics pertinent to job seekers like – How to have a successful first interview, Creative Portfolio reviews will also be discussed.

Experienced game industry professionals and individuals beginning their careers from around the world are welcome to join the event. One-to-one interviews with the hiring studios can be scheduled through the event platform. A great opportunity to get to know the studios and network with game professionals from around the world.

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Participating in the event

As a job seeker attending Nordic Game Talents, take a few minutes to fill out a simple registration form. After filling the registration form you will receive a link to the online event platform – PINE, to join the event on 27th October. Participants joining Nordic Game Talents will also receive a free-of-charge pass to the Nordic Game Conference.

To view the complete agenda, please click here and to learn more about the event please visit Games Job Fair

About Games Factory Talents

A Helsinki-based talent attraction agency dedicated to the games & creative industry. Our services include direct recruitment, organizing game job fairs and managing a community of game industry professionals through our GameDev Talent Board.

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To learn more about Games Factory Talents visit – Games Factory Talents

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810 THE SPREAD

Cumulus Media Launches 810 THE SPREAD, the Bay Area’s First Sports Station Focused on Sports Betting

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Cumulus Media (NASDAQ: CMLS) announces that it has launched the Bay Area’s first Sports radio station focused on sports betting, 810 THE SPREAD. The new station brings sports and sports betting news, information, and insights to the burgeoning and underserved sports betting audience in San Francisco. 810 THE SPREAD will deliver behind-the-book perspectives from experts in a highly entertaining and engaging format. 810 THE SPREAD goes live today on the legendary 810am frequency that has been the 80-year home of historic Talk Radio KGO-AM. Cumulus San Francisco also launched the station’s new website at www.810thespread.com. Kevin Graham, Program Director of Cumulus’ sister sports stations KNBR 680AM/104.5FM and 1050 KTCT, adds Program Director duties for 810 THE SPREAD.

Larry Blumhagen, Vice President/Market Manager, Cumulus San Francisco, said: “810 THE SPREAD joins our sports brands KNBR 680AM/104.5FM and 1050 KTCT for a trifecta of dynamic sports content across four signals and streaming everywhere. We are excited about this new chapter and look forward to serving the Bay Area’s passionate sports fans in an incomparable way.”

Blumhagen added: “This is a bittersweet day for us, as it’s hard to say goodbye to the legendary KGO, which has been a part of listeners’ lives for so many years. We want to thank all the people who have been a part of KGO’s historic run these many years – and the listeners who loyally tuned in to the station. Times change, and we must change with them.”

Kevin Graham, Program Director, 810 THE SPREAD, said: “810 THE SPREAD will be the Bay Area’s best bet for sports fans and sports betting enthusiasts, and we are pleased to introduce sports-betting radio to our community. The station will feature a lineup of expert personalities that deliver unique sports talk and sports betting insights that entertain, inform, and engage, along with Cal Football and Basketball as well as select professional and college sports play-by-play events. While 810 THE SPREAD will feature specific gambling information, we believe our entertaining presentation will make it a favorite for all Bay area sports fans and a perfect complement to the legendary KNBR and KTCT. With its addition, it truly shows Cumulus’ commitment to the Bay area as ‘The Sports Leader’!”

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The weekday programming lineup for 810 THE SPREAD includes:

6am-9am – Bet QL Daily – The must-consume show for sports fans and betting fans alike. Hosted by Joe Ostrowski, Joe Giglio, and Erin Hawksworth.

9am-12pm – Jim Rome - Aggressive, informed sports opinions, rapid-fire dialogue, and plenty of sports smack. As one of the most prolific sports talk hosts in America, Rome draws massive tune-in with legions of fans known as clones, who live for Rome’s take on the day’s largest issues in sports.

12pm-4pm – You Better You Bet – Nick Kostos and Ken Barkley have you covered for the best bets on the biggest matchups, the latest line movement and updates in the futures market. We’ll have up-to-the-minute coverage of backdoor covers and bad beats, and the cheers and tears that come with them. It’s sports betting conversation like you’ve never heard before.

4pm-8pm – Bet MGM Tonight – Live sports betting updates for all the night’s games as they happen – plus live “look-ins” for Major League Baseball games in progress. Get the latest scores, sides, totals, props, parlays, futures, and much more with hosts Quinton Mayo, Trysta Krick, and Ryan Horvat.

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8pm-12 Midnight – CBS Sports Radio

BetQL Network programming is provided by Cumulus Media’s Westwood One through a partnership with Audacy.

For more information or to stream 810 THE SPREAD, visit: http://www.810thespread.com.

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