Nektan plc (AIM: NKTN), a leading international B2B gaming solutions and services provider, has announced a strong trading and business update for the three months ended 31 December 2017 (Q2 FY18).
Managed Gaming Solutions (Europe)
| Q2 FY18 | Q1 FY18 | Change* | Q2 FY17 | Change* | |
| Net Gaming Revenue (NGR) | £4.7m | £3.9m | 21.9% | £3.3m** | 41.6% |
| First Time Depositors (FTDs) | 36,907 | 40,148 | -8.1% | 35,215 | 4.8% |
| Cash Wagering | £127.8m | £126.7m | 0.8% | £106.7m | 19.8% |
*calculated using underlying, non-rounded figures **restated. The figures stated above are all unaudited.
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. A focus on player quality and reducing bonus cash spend has driven a 37% saving in bonuses awarded in Q2 FY18 versus Q1 FY18 and an expected small drop in FTDs.
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 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. The latest technology will be available for demo at ICE on the PG Soft stand.
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.”