NKTN.L Regulatory News (NKTN)

10 January 2018

NEKTAN PLC

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

Q2 Trading Update

Continued Strong Growth & First B2B Revenue

Nektan plc (AIM: NKTN), a leading international B2B gaming solutions and services provider, provides a trading and business update for the three months ended 31 December 2017 (Q2 FY18). The figures stated below are all unaudited.

Managed Gaming Solutions (Europe)

*calculated using underlying, non-rounded figures **restated

· Nektan continued to deliver strong growth in Q2 FY18 compared to Q1 FY18 and Q2 FY17, with NGR in the quarter increasing by 21.9% versus the previous quarter and 41.6% versus the same period last year.

· This is despite a slight drop in FTDs and a marginal increase in cash wagering from Q1 FY18, which are as a result of a deliberate focus by the Company on player quality and efficiency of spend resulting in a 37% saving in bonuses awarded in Q2 FY18 versus Q1 FY18.

· The Company launched 17 new sites and five new partners in Q2 FY18 and is currently operating a total of 94 brands from 51 partners with plans to launch up to 18 new sites from both existing and new partners during the current quarter to 31 March 2018 (Q3 FY18).

· Nektan launched a number of new games from existing and new vendors, including Evolution Gaming and IWG, taking the Group's total mobile games portfolio to over 450.

B2B

· The Company generated initial revenue from its B2B business during Q2 FY18 of £47k and now has five live deals.

· The platform deal previously announced with Tyche is expected to go live during January 2018 and to generate revenue during Q3 FY18.

On-Premise Gaming (North America)

· Respin, Nektan's US subsidiary recently re-branded as Rapid Games™, signed two further deals in Q2 FY18 and is in discussions with other land-based casinos regarding its on-premise solution.

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

"Our core European business continued to progress as expected in Q2 FY18 with a number of further launches planned in Q3 FY18. Our strategy to move into B2B is paying off with initial revenue generated by the Company. We look forward to announcing further positive updates across Nektan's business over the next few months, including on our platform deal with Tyche and our US business."

For further information on the Group, please contact:

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, 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.