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19 Apr 2017 07:00
19 April 2017
NEKTAN PLC
("Nektan", the "Company" or the "Group")
Q3 Trading update
CONTINUING IMPROVED TRADING IN Q3
Nektan plc (AIM: NKTN), a leading international B2B gaming solutions and services provider, provides an update on trading for the three months ended 31 March 2017.
Managed Gaming Solutions (Europe)
· Continued improvements in trading, with growth across key performance indicators ("KPIs") in conjunction with a realignment of player marketing towards higher margin activities which will continue to improve Company profitability
Q3 FY17 | Q3 FY16 | Change | Q2 FY17 | Change | |
Net Gaming Revenue (NGR) | £3.7m | £2.2m | 63% | £3.6m | +3% |
First Time Depositors | 38,424 | 15,568 | 147% | 35,215 | +9% |
Cash Wagering | £99.0m | £56.1m | 77% | £106.7m | -7% |
Transactions processed (bets or spins) | 132.3m | 56.3m | 235% | 122.7m | +8% |
· Further casino network and product improvements in Q3 in Europe:
o Launched 39 new casino games from IGT, NetEnt, Microgaming and NYX
o New localised casino proposition for the Swedish market
o Signed and launched 13 new casinos for both existing and new customers
B2B (Europe)
· As the Company proceeds with its realigned strategy to leverage its assets, expertise and networks across both North America and Europe, the Company launched a new B2B software licensing and games distribution business with the signing of:
o Partnership agreement with Hi5 Games to become the distributor of its game titles in Europe and Canada with exclusive rights over the games portfolio and additional rights to transfer the games to HTML5 mobile format
o Distribution contract with Spin Games LLC ("Spin") to license and supply Spin's portfolio of proprietary and certain third party mobile casino games to European gaming operators
On-Premise Gaming (North America)
· On 6 February 2017, the Company increased its ownership of Respin Inc, the US focused Class II mobile in-venue solution provider, to 100%, transitioning the business to an operating subsidiary of Nektan from a joint venture
· In the quarter, Respin signed its first major contract with a Tier-1 US casino operator to launch its real money in venue mobile games solution into the US casino market and has a further 5 signed Letters of Intent from other casinos to install the solution
Leigh Nissim, Chief Executive Officer of Nektan, said:
"I'm encouraged by Nektan's continuing improvements in trading and the continuing realignment of the Company to a leading international gaming solutions and services provider.
In our Managed Solutions business in Europe, we have focused intentionally on optimising the managed casino network, improving the return on our player marketing spend for certain partner brands and proactively controlling our operating costs across the casino network. The net impact of both adjustments is positive - the network continues to grow and at the same time our margins are improving.
The launch of our new B2B games and software licensing business in Q3 is exciting and will be an important focus for Nektan to support our growth. The good progress of our North American business in signing new customers also positions the business well for future success.
Nektan continues to make positive progress across our businesses in Europe and the US, powered by our proprietary core platform, Evolve, helping the Company to strengthen its position as an international gaming provider, offering solutions and services that are fresh, high quality and tangibly different from other suppliers."
For further information on the Group, please contact:
Nektan Leigh Nissim, Chief Executive Officer Patrick Sinclair, Chief Financial Officer | via Newgate below
|
Stockdale Securities Limited Tom Griffiths / Ed Thomas
| +44 20 7601 6100 |
Newgate (PR Adviser) James Benjamin
| +44 20 7680 6550 / + 44 7747 113 930 Email: nektan@newgatecomms.com |
Further information on Nektan can be found on the Group's website at www.nektan.com
About Nektan:
Nektan is a leading international B2B mobile gaming solutions 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 in partnership with Spin Games, Respin LLC, 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 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.
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