Nektan posts losses despite revenue growth in H1
Nektan has announced a year-on-year increase in revenue during the first half, but also posted a heightened operating loss in the period.
Total revenue in the six months through to December 31, 2017, came in at £8.1m (€9.1m/$11.2m), up 54% on the corresponding period in 2016.
Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) loss amounted to £1.6m, which is higher than £1.5m in the first half of 2016, but adjusted EBITDA loss for Managed Gaming Solutions improved from £1.5m to £918,000.
Elsewhere, operating loss increased from £512,000 to £3.2m, while Nektan also posted a loss before taxation of £4.2m, compared to a profit of £1.19m last year.
Nektan noted that in 2016, operating profit included profit on brands disposal of £1.95m and profit before taxation includes profit on brand disposals, adding the fair value adjustment on increase in equity ownership of £2.32m.
Basic and diluted loss per share stood at 12.6 pence, which is down from a profit of 4.9 pence in the same period last year.
Gary Shaw, interim chief executive 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 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.”
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