News
Nektan achieves EBITDA break-even as European arm continues to grow and new business opportunities emerge globally
Reading Time: 8 minutes
Nektan plc, the fast-growing international gaming technology and services provider, announces its unaudited interim results for the six months ended 31 December 2018.
Financial Summary:
| Unaudited six months ended 31 December 2018
£’000  |
Unaudited six months ended 31 December 2017
£’000
|
|
| Revenue | 13,019 | 8,808 |
| Total Adjusted EBITDA* | 336 | (916) |
| Operating loss from continuing operations | (201) | (1,919) |
| Loss before taxation from continuing operations | (843) | (2,926) |
| Basic & diluted loss per share (pence) continuing operations | (2.7) | (9.2) |
| Basic & diluted loss per share (pence) continued & discontinued operations | (14.9) | (12.6) |
*Adjusted EBITDA loss exclude depreciation, amortisation, income or expenditure relating to exceptional items, non-cash charges relating to share based payments and impairments.
Summary:
- Revenue in the six months ended 31 December 2018 (“H1 FY19”) up 48% versus the six months ended 31 December 2017 (“H1 FY18”) and 17.6% versus the six months ended 30 June 2018 (“H2 FY18”).
- Adjusted EBITDA of £336k (H1 FY18 (£916k) loss), driven by increased revenues and resulting business efficiencies.
- The US operations have been classified as discontinued in the period under review and prior period following the Company’s announcement on 27 December 2018, advising of the proposed sale of the majority shareholding of Nektan’s US subsidiary, Respin. The associated assets and liabilities of the US subsidiary have been classified as held for sale and an impairment recorded of £2.9m based on the expected sale proceeds.
- Launched new white label casino partners, notably the Shipley Brothers, taking the number of fully-managed global casino brands to a record 152 across Europe.
- Higher margin B2B division established as significant global revenue driver for the business with 10 partners live by 31 December 2018.
- The directors remain in discussions with HMRC for the £2.9m owed for UK point of consumption tax as at 31 December 2018, which will be significantly reduced by virtue of the funds received from the equity fundraising and part disposal of Respin.
- Lucy Buckley joined as Chief Executive Officer on 3 December 2018.
Post period-end:
- Several new B2B partnerships are underway including the previously announced Addison Global’s MoPlay.
- US subsidiary, Respin, soft launched its proprietary in-venue mobile gaming product with a major US tier-one casino operator and signed a new contract with one of the largest casinos in Palm Springs, California.
- The proposed sale of the majority shareholding of Nektan’s US subsidiary, Respin, is progressing and the Company expects to enter into a binding contract for the sale as soon as possible, but in any event no later than 30 April 2019.
- Nektan announced on 8 February 2019 that it has received more support for the placing and subscription than previously announced on 27 December 2018, with demand at £2.2 million. However, there is a short delay in executing all transactions as they are inter-conditional.
- Trading in Nektan’s B2C white label business during Q3 FY19 has, so far, been flat year-on-year and down versus Q2 FY19, 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 our Swedish operator licence. The Board expects trading to improve in the next quarter (Q4 FY19).
Lucy Buckley, Chief Executive Officer of Nektan, said:
“Achieving EBITDA break-even during the period is a key milestone for Nektan and our key focus for the remainder of FY19 is on maintaining and improving profitability. EBITDA break-even was reached due to both increased revenues and operational efficiencies. Whilst we believe in our US mobile casino product, and are excited about the macro trends in the market, the proposed sale of the majority shareholding of our US subsidiary is a major contributor to our profitability plan by removing Nektan funding for the US going forward, but retaining a material stake in the emerging US market.
In Europe, Asia and Africa, our emergent B2B division is generating new high margin revenue by licensing our proprietary technology to leading operators. We are successfully attracting major casino and gaming partners as evidenced by our BetVictor launch in October 2018 and post-period end contract win with MoPlay, announced in March 2019. This growth was only achievable with the firmly established B2C and white label network which grew to a record total of 152 casino sites during the period.
All this is underpinned by our cutting-edge proprietary mobile casino technology and agility, allowing us to attract new partners, get live quicker and optimise their revenues with our advanced operational and promotional tools. Nektan is in a strong position to build on the success of the first half of FY19 and we look forward to providing further updates.”
For further information on the Group, please contact:
| Nektan
Lucy Buckley, Chief Executive Officer Gary Shaw, Executive Officer |
+35 0 2006 4958
|
| Stockdale Securities Limited
Tom Griffiths / David Coaten |
+44 20 7601 6100 |
| Nominis Advisory Ltd (PR Adviser)
Angus Campbell |
+44 7 881 625 098 |
Further information on Nektan can be found on the Group’s website at www.nektan.com.
About Nektan:
Nektan is a fast growing, international gaming technology and services provider, specialising in mobile casino. It licenses its proprietary technology to leading operators including BetVictor and provides end-to-end technology and white label casino services for leading brands including News International’s, The Sun Play.
Nektan’s full end-to-end technology platform, Evolve, enables the management of the full customer experience and back-office operations, allowing partners to focus on marketing the product to their consumers.
The E-Lite platform is Nektan’s B2B gaming content aggregator and bonusing platform that delivers a wide range of premium content from the world’s leading game studios. It is an easily-integrated add on module for operators, giving them an array of options and flexibility on how they manage and distribute a breadth of premium gaming content across their networks.
Nektan’s US operating subsidiary, Respin, provides US land-based casinos with an in-venue mobile gaming solution. It allows operators to add mobile technology and content to their existing offerings, with products accessible to players across both cabinets and mobile devices inside casinos.
Headquartered in Gibraltar, Nektan is regulated by the Gibraltar Licensing Authority, the UK Gambling Commission and the Information Commissioners Office. As a socially responsible license holder, Nektan endeavours to deliver a safe, secure and robust player gaming experience.
Nektan plc was admitted to the AIM market of the London Stock Exchange in November 2014.
CHIEF EXECUTIVE’S STATEMENT:
Overview
The first six months of this financial year has been a landmark period for the business. Having signed some significant partnerships during the period, we are increasingly being seen as a major mobile and online casino technology business, providing premium gaming content from some of the best game developers in the world to some of the biggest gaming brands globally. The BetVictor contract win was one such deal that demonstrates this and was only made possible due to the breadth and depth of our gaming content portfolio.
Revenue growth is increasing year-on-year, as is our profitability, and we have achieved EBITDA break-even in the period. Whilst we are still in the process of divesting a majority stake in our US subsidiary, Respin, which will help reduce the cash burden on the business, Nektan will still keep a material stake in the US as we see it as an important emerging market.
Whilst our portfolio of gaming content is large by industry standards, we continue to look for the highest quality games to enrich the product offering to our partners. In certain circumstances, we partner with game developers as this gives us higher margins on the revenue generated from those games. A highlight from this strategy was the launch of Rank Up Dragon in December 2018, which we co-developed with Rising Entertainment and since its launch has been a top performer across our B2C network.
At Nektan, we aim to adhere to the highest levels of game compliance in our regulated markets. On top of this, we are very cognisant of problem gambling and we use our technology to ensure we can limit this wherever possible. As a socially responsible operator in the online gaming industry, we adopt our own standards which extend beyond what is required by the regulator and bodies such as GamStop. We have continuous technical development cycles to create new tools and enhancements to protect all our players with particular emphasis on those who are most vulnerable.
Financial Review and KPIs
Nektan’s KPIs continue to demonstrate robust growth for the Company and most significantly we achieved EBITDA break-even in H1 FY19. With revenues continuing to rise and costs being kept under control, we continue on our path to profitability and expect European EBITDA break-even by the end of FY19 (30 June 2019).
- NGR increased 48% in the period to £13.0 million (H1 FY18: £8.8 million);
- First time depositors remained constant in the period at 75,334 (H1 FY18: 74,755); and
- Cash wagering for B2C increased 36% in the period to £346.2 million (H1 FY18: £254.5 million).
Taking the continued operations, gross profit increased from £5,728k at 65% of revenue in H1 FY18 to £8,484k at 65% of revenue for H1 FY19. Adjusted EBITDA for continued operations showed a marked improvement from a loss of £916k in H1 FY18 to a profit of £336k in H1 FY19.
Marketing, partner and affiliate costs increased from £4,503k, or 51% of revenue, to £6,065k, or 47% of revenue, demonstrating efficiencies as the business grows. Administrative costs decreased from £2,141k, being 24% of revenue, to £2,083k (16% of revenue).
The continued loss before tax for the period was £868k compared to £2,926k in the prior period. The total loss was £4,798k which includes a loss of the discontinued US business of £3,930k, this includes an impairment of £2,974k. This led to a loss per share from continuing operations of 2.7p (H1 FY18: loss per share of 9.2p).
Our technology and business model
Nektan aggregates and delivers premium casino content from the industry’s leading game providers which, using its proprietary technology, it delivers as either a fully managed white label casino solution to its B2C partners or as a content distributor to its B2B partners. Nektan’s white label solution is delivered via its Evolve platform, while the E-Lite platform distributes cutting-edge content.
Our technology is new and has been built from the ground up, making it versatile and highly agile. We can deliver live gaming environments for our partners very quickly and, depending on the requirement or jurisdiction, in multiple languages. As the proliferation of mobile device use continues, Nektan is taking a ‘mobile first’ approach, especially when it comes to partnering in Asia where mobile adoption and gaming is growing exponentially.
We provide partners with the ability to tailor their offering. Decisions can be informed by our robust business intelligence tools, which provide highly insightful management information for optimisation of bonusing and gaming, leading to exceptional user experience.
Team
On behalf of the Board, I would like to thank the entire team at Nektan for all their hard work over the period. Without their belief in the business we would not find ourselves in this strong turnaround position. It is their dedication and professionalism that is driving the Company forward and helping to attract major partners who want to use our technology to enhance and build their gaming brands across the globe.
We also announce that the Group’s CFO, Patrick Sinclair has left the Company and we thank him for his contribution to Nektan during this significant period of growth. Whilst interim-CFO Ken Duncan assumes his responsibilities, the process of finding a replacement is underway.
Funding
During the period, Nektan announced a placing, debt conversion and partial sale of Respin, its US division. Subject to the proposed sale of the majority shareholding of Respin, the Company reaffirms that it has strong support for its placing and subscription, with demand currently at £2.2 million, higher than the minimum £1.5 million sought. The Company expects to enter into a binding contract for the US sale as soon as possible, but in any event no later than 30 April 2019. The directors remain in discussion with HMRC for the £2.9m owed for UK point of consumption tax as at 31 December 2018, which will be significantly reduced by virtue of the funds received from the equity fundraising and part disposal of Respin.
Negotiations on the sale of the majority of our wholly owned US subsidiary, Respin LLC, are progressing and we fully expect to complete this transaction by 30 April 2019. The assets and liabilities related to this business have been presented separately in the Consolidated Statement of Financial Position and are presented as discontinued operations in the Condensed Consolidated Statement of Comprehensive Income. The comparatives in the prior year’s statement have also been restated.
Current Trading and Outlook
Following a record two quarters, B2C trading to date in Q3 FY19 is flat year-on-year and down versus Q2 FY19. This is due to a number of factors that have impacted FTDs and deposits on our white label network, including seasonality, increased UK regulation around player marketing and verifications and a delay in the granting of our Swedish operator licence. However, the Board expects trading to improve in the next quarter as we now have a record number of 152 casino brands on our network and are continuing to sign up new white label partners, as well as enhancing our player retention and loyalty tools. Our B2B division grew significantly in H1 FY19 and the pipeline is very positive, especially in high growth regions such as Asia and Africa. We also continue to seek regulation in jurisdictions that we believe will be value accretive and lead to improved trading in the next quarter.
Lucy Buckley, Chief Executive Officer.
Source: European Gaming Media
This is a Syndicated News piece. Photo credits or photo sources can be found on the source article: Nektan achieves EBITDA break-even as European arm continues to grow and new business opportunities emerge globally
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.
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.
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.
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
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/
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.
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.
To learn more about Games Factory Talents visit – Games Factory Talents
810 THE SPREAD
Cumulus Media Launches 810 THE SPREAD, the Bay Area’s First Sports Station Focused on Sports Betting
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’!”
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.
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.
Crown Reinstated at Sydney Casino
Playtech Expands LeoVegas Partnership to the Netherlands
Nebraska’s First Permanent Casino to Open in May in Columbus
Onlyplay Enters into Strategic Partnership with Ritchie Rabbit
EGT Digital and PublicWin: A Successful Combination in Romania
Paddy Power launches new innovative Checkd Dev betting tool Mix ‘N Match
Romania Bans Gambling Venues in Small Towns and Villages
Bragg Gaming Announces Resignation of Chief Financial Officer
Week 14/2024 slot games releases
Play’n GO digs deep for the treasures of ancient kings
-
gaming2 years agoODIN by 4Players: Immersive, state-of-the-art in-game audio launches into the next generation of gaming
-
EEG iGaming Directory7 years ago
iSoftBet continues to grow with new release Forest Mania
-
News6 years ago
Softbroke collaborates with Asia Live Tech for the expansion of the service line in the igaming market
-
News5 years ago
Super Bowl LIII: NFL Fans Can Bet on the #1 Sportsbook Review Site Betting-Super-Bowl.com, Providing Free Unbiased and Trusted News, Picks and Predictions
-
iGaming Industry6 years ago
Rick Meitzler appointed to the Indian Gaming Magazine Advisory Board for 2018
-
News5 years ago
REVEALED: Top eSports players set to earn $3.2 million in 2019
-
iGaming Industry6 years ago
French Senator raises Loot Boxes to France’s Gambling Regulator
-
News6 years ago
Exclusive Interview with Miklos Handa (Founder of the email marketing solutions, “MailMike.net”), speaker at Vienna International Gaming Expo 2018
