TIDMNKTN
RNS Number : 2140V
Nektan PLC
05 April 2019
NEKTAN PLC
("Nektan", the "Company" or the "Group")
Q3 FY19 TRADING UPDATE
Nektan plc (AIM: NKTN), the fast growing, award-winning
international gaming technology platform and services provider, is
pleased to announce a trading update for the third quarter of its
financial year ending 30 June 2019 (Q3 FY19).
During the quarter, overall revenue rose 5.9% on the same period
a year ago (Q3 FY18). The B2B division reported record growth and
revenues, while B2C experienced a decline in KPIs as announced in
the Company's unaudited interim results released on 25 March 2019,
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. The Board expects trading to improve in the next
quarter (Q4 FY19).
The figures stated below are all unaudited.
KPIs
Q3 FY19 Q2 FY19** Change Q3 FY18** Change
Revenue* GBP5.4m GBP6.4m -15.6% GBP5.1m 5.9%
--------- ---------- ------- ---------- -------
B2C Net Gaming Revenue GBP5.1m GBP6.2m -17.7% GBP5.1m 0%
--------- ---------- ------- ---------- -------
B2B Revenue GBP0.35m GBP0.2m 75.0% GBP83k 322%
--------- ---------- ------- ---------- -------
B2C First Time Depositors (FTDs) 31,914 36,328 -12.2% 36,359 -12.2%
--------- ---------- ------- ---------- -------
B2C Cash Wagering GBP141m GBP168m -16.0% GBP142.4m -1.0%
--------- ---------- ------- ---------- -------
*Net Gaming Revenue (jackpot adjusted) from B2C and Revenue
Share from B2B
**adjusted
*calculated using underlying, non-rounded figures
Highlights
-- Global sales pipeline of future B2B and B2C partners remains strong.
-- Growth trajectory remains on track and having reported
European EBITDA break-even in H1 FY19, this is forecast to continue
in H2 FY19, with break-even expected for FY19 (30 June 2019).
-- B2B - revenue increased 75.0% to GBP0.35m in Q3 FY19, up from
GBP0.2m in Q2 FY19 (up 322% on Q3 FY18).
-- B2B - 10 partners currently live and further distribution
deals signed with 7 new partners, including the recently announced
Bede. All due to go live in Q4 FY19.
-- B2B - E-Lite platform and content distribution deal signed with Addison Global's MoPlay.
-- B2B - benefitting from its speed of integration and breadth of premium gaming content.
-- B2C - network now with a total of 152 white label casino
sites live, with 10 new partner contracts signed in the period.
-- B2C - trading is expected to improve in Q4 FY19 due to the
continued growth and breadth of the Company's casino network.
Gaming Content Update
-- Games content is increasing across both B2C and B2B with the
total number of available games increased to 834 (750 in Q2 FY19,
an increase of 11%), from a total of 38 games providers (27 in Q2
FY19, an increase of 41%).
-- Content aggregation deals signed with leading studios Leander and Rock Salt.
North America Update
-- Nektan's US subsidiary, Respin LLC (Respin), soft launched
its Class II and Class III mobile 'On Premise' product with a major
tier-one casino group at one of its properties in California.
-- 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 being finalised and the Company expects to
enter into a binding contract for the sale shortly, but in any
event no later than 30 April 2019.
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."
For further information on the Group, please contact:
Nektan
Lucy Buckley, Chief Executive Officer
Gary Shaw, Executive Officer +44 20 3463 8735
Stockdale Securities Limited (Nominated Adviser and Joint Broker)
Tom Griffiths / David Coaten +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 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.
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END
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