Nektan CEO hails Asia progress after record results
Nektan is benefiting from Asia’s transition from a single-solution to “sophisticated” multi-vendor market for operators, according to the B2B and white label gaming software provider’s interim chief executive, Gary Shaw.
In a trading update this (Wednesday) morning, Nektan confirmed that it had posted a sharp 48.1% increase in net gaming revenue for the 12 months through to June 30 to £19.4m (€22m/$25.7m) after an 18.5% rise in first-time depositors in the final quarter, with “rapidly accelerating demand… especially in Asia”.
Shaw told iGamingBusiness.com that Nektan is building on the momentum of its record results by launching its bonus and CRM tools in Asia “in the next couple of weeks” and revealed that the company is targeting 16 site launches this quarter in its home market of the UK and internationally through existing and new partners.
However, Nektan’s positive outlook for Asia contrasts with that of Playtech, which issued a profit warning on Monday after revealing that its full-year revenue from the continent is on course to be about €70m lower than expected due to an “increasingly competitive backdrop” and “a particularly aggressive pricing environment from new entrants” towards the end of the first half of the year.
According to Shaw, operators in Asia are becoming less reliant on turnkey solutions, with other "sub-set" options now on the table.
“There are new entrants in Asia and we are one of them, and our focus is on operators across Southeast Asia, where there are 650 million people,” Shaw (pictured) said.
“As we are new to the market and the market is so large, it’s a fantastic opportunity for us. If you’ve already scaled your operation in Asia, it’s going to get harder.
“Rather than just using turnkey solutions, as was the case for several years, operators are now interested in new entrants that are coming in with better sub-set products, so people with niche game content layers and data analytics tools are benefiting.
“There are still turnkey solutions, but now there are also additional products and that’s why you’re seeing some margins drop away.
“The market is shifting from a single-solution approach to a multi-vendor approach with most operators, who want to go with the best-in-class option. It’s just a sign of the market becoming more sophisticated.”
Nektan’s bonus and CRM tools will be switched on in Asia imminently via “a couple of operators”, Shaw added. “We been testing with them for about a month,” he said. “That’s going to be very exciting for us in Asia.”
In March, Nektan started offering its B2B gaming platform, Evolve Lite, in Asia for the first time through a partnership with Tyche Digital Malta Limited. Nektan said in its trading update that it is in talks with a number of industry partners to integrate the solution on a platform-to-platform basis in the next two quarters.
Closer to home, Nektan is seeking expansion in Eastern Europe, as well as Scandinavia and, in particular, Germany.
In May, Nektan announced that it had linked up with Metric Gaming to provide a racing and sportsbook offering in the US.
Nektan is also in discussions with five studios with the aim of making its proprietary remote gaming server available to them. The studios are spread across Australia, Japan, India and the US.
“We will make co-operation announcements in the next quarter,” Shaw said. “They will use our RGS solution in Europe and Asia in the first instance as those markets have scaled.”