TIDMNKTN
RNS Number : 1933K
Nektan PLC
09 April 2018
9 April 2018
NEKTAN PLC
("Nektan", the "Company" or the "Group")
Q3 Trading Update
CONTINUING STRONG GROWTH IN REVENUES AND NEW MARKETS
Nektan plc (AIM: NKTN), an international B2B and white label
gaming software and services provider, provides a trading and
business update for the three months ended 31 March 2018 (Q3 FY18).
The figures stated below are all unaudited.
Managed Gaming Solutions (Europe)
Q3 FY18 Q2 FY18 Change* Q3 FY17 Change*
---------- ---------- -------- ---------- --------
Net Gaming Revenue
(NGR) GBP5.1m GBP4.7m 8.2% GBP3.5m** 44.8%
----------------------- ---------- ---------- -------- ---------- --------
First Time Depositors
(FTDs) 36,359 36,907 -1.5% 38,424 -5.4%
----------------------- ---------- ---------- -------- ---------- --------
Cash Wagering GBP142.4m GBP127.8m 11.5% GBP99.0m 43.8%
----------------------- ---------- ---------- -------- ---------- --------
*calculated using underlying, non-rounded figures
**restated
-- Nektan continued to deliver strong growth, with NGR in Q3
FY18 of GBP5.1m, increasing by 8.2% compared to Q2 FY18 and by
44.8% versus Q3 FY17.
-- The slight dip in FTDs is due to Nektan's continued focus on
the quality of the player and spend. This focus on player quality
resulted in cash wagering increasing by 11.5% in Q3 FY18 from the
previous quarter and by 43.8% versus Q3 FY17.
-- Nektan launched 18 new sites and five new partners in Q3
FY18. The Company is now operating with a total of 111 brands from
49 partners with plans to launch up to 20 new sites from both
existing and new partners throughout the quarter ending 30 June
2018. We continue to rationalise sites and partners as part of our
ongoing focus on operational improvement.
-- A total of 73 games were launched in Q3 FY18, from three new
as well as existing game vendors, further diversifying Nektan's
game portfolio.
B2B
-- Nektan generated GBP83k in revenue from the B2B business
during Q3 FY18 versus GBP47k in Q2 FY18 with a total of nine deals
now live globally.
-- The first global platform deal with Tyche Digital ("Tyche")
is now live and generating revenue, opening up a significant
pipeline of further opportunities. Nektan has a total of three
deals now live in Asia and has completed 10 game vendor
integrations delivering 250+ games on its Evolve Lite platform.
o The Company expects to go live with its first Tier 1 operator
in Asia during April 2018 and Tyche has signed a further four deals
with significant Asian operators, which are expected to go live
before Nektan's financial year-end.
-- New, higher margin, revenue sources for Nektan from sheltering and platform deals:
o During the last quarter, Nektan went live with a sheltering
deal allowing games developer Magnet Gaming to operate in Gibraltar
under Nektan's licence. Further sheltering deals are expected to be
approved and launched before the Company's financial year-end;
o The Group has a number of ongoing commercial discussions
around additional platform deals and expects to have at least one
further deal live in this calendar year.
On-Premise Gaming (North America)
-- Nektan's US subsidiary, Rapid Games(TM), continues to
generate significant interest in its on-premise solution and is
expected to complete back-end system integration with a major
commercial operator and to initiate trials with further
multi-property groups during the current quarter.
-- During the last quarter, Rapid Games(TM) completed the
development of, and received certifications for, its latest product
additions, which now include a third party Class III RGS,
integrations with smart tables and tablets, a growing library of
both Class II and III games and compliance with an expanding list
of standards and regulations.
Gary Shaw, Interim Chief Executive Officer of Nektan, said:
"Our results clearly demonstrate Nektan's growing commercial and
operational strength throughout international markets. The
significant increase in net gaming revenues and cash wagering from
our European white label business represents continuing growth
momentum. This growth, at the same time as launching into new
markets, underlines Nektan's strength of management and technical
capabilities. I am particularly pleased with our ability to expand,
deploy and support in multiple geographic markets during this
period from our stable, centralised cost base, delivering
incremental revenue growth to the Group.
Nektan is becoming one of the market leaders in both mature and
emerging markets for our sector and, as the market expands over the
next year and beyond, our technology will become even more sought
after. We remain confident about our growth strategy and look
forward to announcing further encouraging updates over the coming
months."
For further information on the Group, please contact:
Nektan
Gary Shaw, Interim Chief Executive
Officer
Patrick Sinclair, Chief Financial
Officer +44 20 3463 8735
Stockdale Securities Limited
Tom Griffiths / Ed Thomas +44 20 7601 6100
Newgate (PR Adviser) +44 20 7680 6550 / +44 7747 113
James Benjamin 930
Email: nektan@newgatecomms.com
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) gaming 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.
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(TM)
(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 its two primary geographical targets, 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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