Nektan PLC Trading Update (9262A)
January 27 2020 - 1:01AM
UK Regulatory
TIDMNKTN
RNS Number : 9262A
Nektan PLC
27 January 2020
27 January 2020
NEKTAN PLC
("Nektan", the "Company" or the "Group")
Trading Update
Nektan plc (AIM: NKTN), the fast growing, award-winning
international gaming technology platform and services provider,
announces a trading update for the six months ended 31 December
2019.
Following the Group's restructuring, as announced on 7 January
2020, the Company is now focused on delivering enhanced casino
technology and gaming content into international markets with
leading operators under a higher margin B2B business model. With
this in mind, Nektan is pleased to announce the following trading
update for the continuing business, on an unaudited basis for the
six months ended 31 December 2019.
Six months ended 31 December 2019 KPIs (unaudited)
H1 FY20 H1 FY19 Change Dec 2019 Nov 2019 Change
-------- -------- ---------
B2B Revenue GBP787k GBP311k 153.1% GBP225k GBP111k 102.7%
--------------------------- -------- -------- ------- --------- -------- ------
# sites live / generating
revenue 28 5 28 18
--------------------------- -------- -------- ------- --------- -------- ------
# sites live / in
beta 6 - 6 4
--------------------------- -------- -------- ------- --------- -------- ------
# sites in pipeline
to launch 21 6 21 6
-------- -------- ------- --------- -------- ------
* Number of sites is the key KPI as B2B partners may operate
multiple sites across markets.
In the B2B division, the Group generated revenues of GBP787k in
H1 FY20 - growth of 153.1% over H1 FY19. It should be noted that Q2
FY20 saw an intense period of activity with a significant number of
sites either entering beta or going live. Whilst we would expect a
ramp up period of 3-4 months following launch, revenue in December
2019 grew by 102.7% over November 2019, underpinning management's
confidence of significant growth over the coming months as sites
which have recently gone live ramp up.
The Group is now live in multiple markets across Europe, Africa
and Asia, with Latin America to be launched in Q3 2020. Following
the period end, the Board is pleased to report that the Group has
launched a further 6 sites in January 2020 that were in beta in
December 2019. A further pipeline of 21 confirmed sites is
currently due to be launched over the coming months. The monthly
revenue to be earned under the recently signed platform agreement
with Grace Media Limited following their acquisition of the Group's
previously held UK B2C business (which launched as a B2B partner in
January 2020) will provide a further uplift to B2B revenues from
January 2020 onwards.
Gary Shaw, Interim Chief Executive Officer of Nektan, said:
"The restructuring represents an important milestone for Nektan.
We can now focus on executing our strategy of becoming a dedicated
casino technology and gaming content provider globally. These
initial results support the Directors' decision to focus solely on
B2B opportunities.
Trading for the six months to 31 December 2019 saw the Group
achieving more than double the revenues for the same period last
year. The last few months have seen an intense period of activity
culminating in now having 34 sites live. With the majority of these
going live at the back end of the calendar year, combined with a
3-4 month ramp up period, we expect to report further significant
revenue growth during the current quarter (Q3 2020) - early signs
in January underpin this. As a result, the Group continues to
anticipate reaching monthly EBITDA break-even by the end of this
financial year."
For further information on the Group, please contact:
Nektan
Gary Shaw, Interim Chief Executive Officer
Simon Hay, Chief Financial Officer
Kam Bansil, IR +44 203 478 2648
Shore Capital (Nominated Adviser and Joint Broker)
Tom Griffiths / David Coaten +44 207 408 4050
-----------------
Novum Securities (Joint Broker)
Jon Belliss / Colin Rowbury +44 207 399 9425
-----------------
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.
Nektan's full end-to-end technology platform, Evolve, enables
the management of the full customer experience and back-office
operations, allowing operators on this platform to allow their
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 has a material stake in US-based interactive gaming
operator Rapid Games, which provides US land-based casinos with an
in-venue mobile gaming solution. It allows operators to add mobile
technology and content making 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 licence 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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