# Nektan plc more than double revenues after restructuring

- Link: https://www.directorstalkinterviews.com/nektan-plc-more-than-double-revenues-after-restructuring/412804012
- Published: 2020-01-27T07:13:07+00:00
- Author: Giles Arbor

**Nektan plc** (LON: NKTN), the fast growing, award-winning international gaming
technology platform and services provider, announced today 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 | £787k | £311k | 153.1% | £225k | £111k | 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 £787k 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 plc, 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.”

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