NKTN.L Regulatory News (NKTN)

18 April 2016

Nektan plc

("Nektan", the "Company" or the "Group")

Trading Update for the three months ended 31 March 2016 (Nektan Qtr 3)

Nektan PLC (AIM: NKTN), a leading international, business-to-business technology platform and content provider for the gaming industry today provides an update on trading for the three months ended 31 March 2016.

Key Highlights

Significant quarterly growth across all key performance indicators ("KPIs") in Real Money Gaming ("RMG") in Europe during the period.

· Net gaming revenue ("NGR") growth of 115% in Q3 to £2.3 million (Q2: £1.07 million; Q1: £0.55 million).

· Total cash bets performed by players/turnover growth of 87% in Q3 to £56.21 million (Q2: £30.03 million; Q1: £15.40 million).

· Total player cash deposits growth of 76% in Q3 to £3.78 million (Q2: £2.15 million; Q1: £1.16 million).

· Total number of first time depositors ("FTDs") increased 42% in Q3 to 15,628 (Q2: 11,011; Q1: 6,472).

· Signed 11 new partners in the period.

· Increased capacity to launch new partners on the Evolve gaming platform from 4 a month to 6-7 a month.

· The Group announced in March 2016 a new fundraising totalling £2.93 million that puts in place additional working capital to support the strong growth being delivered in Europe.

Respin LLC ("Respin"), the Group's US joint venture, continued to build on its strong momentum in the period from its first mover advantage in the mobile in-venue gaming market, enabling the linking of in-venue platforms in casinos to mobile play on smartphones.

· On 7th April 2016, Respin won the iGaming North America 2016 Best Innovation in North America award ahead of a number of major players in the market. Respin have merged the mobile and land based worlds within the boundaries of regulation driving both a disruptive and innovative product.

Gary Shaw, interim Chief Executive Officer of Nektan, said:

"We are delivering significant growth and seeing strong momentum building across all key performance indicators in Europe, whilst we continue to make good progress on further reducing the cost base of the business. We remain confident on the outlook for the full year.

"We were also extremely pleased that our US joint venture, Respin, won the Best Innovation in iGaming North America 2016 award versus stiff competition with industry judges commenting that the product was 'ideal for millennial users that are comfortable with multi-tasking with their devices while on property which is key for future growth.'"

The Group has published on its website a presentation of the growth in key metrics in the first three quarters of the financial year.

For further information on the Group, please contact:

Further information on Nektan can be found on the Company's website at www.nektan.com 

About Nektan:

Nektan is a leading international, business-to-business technology platform and content provider for the gaming industry. The Group designs, builds and operates mobile games in the regulated, interactive real money gaming space delivering original and innovative content to large 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 solely on marketing the product to their consumers.

Nektan also operates a joint venture, Respin LLC, with Spin Games LLC that provides US land-based casinos with in-venue mobile technology and an innovative way of increasing revenue from end-of-life cabinets whilst providing players new and innovative content to play, which includes functionality on mobile devices.

Nektan is regulated by the Gibraltar Licensing Authority and the UK Gambling Commission, as well as in the Irish market, and has offices in Gibraltar, London and Las Vegas with Respin based in Reno, Nevada.