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Nektan PLC

Nektan Plc Revenue up 54% with strong trading momentum

Nektan plc (LON:NKTN), an international B2B and white label gaming software and services provider, announced today its unaudited results for the six months ended 31 December 2017.

Financial Summary:

Unaudited six months ended 31 December 2017

£’000

Unaudited six months ended 31 December 2016

£’000

 

Total revenue

8,815

5,727

Adjusted EBITDA loss*

(1,647)

(1,498)

Adjusted EBITDA loss* – Managed Gaming Solutions

(918)

(1,498)

Operating loss **

(3,165)

(512)

(Loss)/profit before taxation **

(4,172)

1,188

Basic & diluted (loss)/earnings per share (pence)

(12.6)

4.9

*Adjusted EBITDA loss exclude depreciation, amortisation, income or expenditure relating to exceptional items, profit on brand disposals and non-cash charges relating to share based payments and impairments

**In 2016 operating profit included the profit on brands disposal of £1,950k and profit before taxation includes the profit on brand disposals and the fair value adjustment on increase in equity ownership of £2,322k

Summary:

· Revenue up 54% versus six months ended 31 December 2016 and 17% versus six months ended 30 June 2017

· Significantly reduced losses in the Managed Gaming Solutions division with an adjusted EBITDA loss of £918k (H1 FY17: £1,498k)

· First global platform deal signed in B2B technology services with Tyche Digital opening up significant new pipeline of opportunities that Tyche is developing

· First revenues in the European B2B division with 5 deals now live

· Nektan takes first mobile cash bet at casino in US

· Raised £1.76m through a placing and subscription of new shares in December 2017

Post period-end:

· Continued trading momentum in European business with revenue from diversification from white label and gaming service provision business

· Over 100 casino brands now live from 52 partners, including new European-focused partnerships

· Nektan’s Evolve Lite Platform live in Asia with 247 Asian games and a number of contracts signed through the Tyche Digital integration

· Following its launch in the US in August, its US business is progressing and is currently installing in three land-based casinos

Gary Shaw, Nektan Plc Interim Chief Executive Officer of Nektan, said: “The European business continues to deliver strong trading momentum. We are developing our mobile first casino product, diversifying our portfolio of services to include additional B2B gaming solutions in Europe, US and now Asia.

Our European white label services business now consists of over 100 casino sites. We continue to leverage our partnerships with numerous global game providers including Realistic Games, Pragmatic Play™, Booongo Gaming and Pocket Games Soft, to deliver the Nektan Technology platform into further new geographic markets with localised content.

I am particularly pleased that we are maintaining a central cost base to develop these revenue opportunities. We are expecting continued margin improvements, as our business partners develop new markets utilising our core technology platform, and to become a successful global technology supplier.”