Nektan continues strong growth in Q3 despite lower cash wagering

rnational B2B gaming solutions and service provider, Nektan Plc posted its financial results ending 31 March 2017.

The third quarter saw Nektan’s gaming revenue rise from £2.2m to £3.7m, an increase of 63% from the year prior, and 3% more than in Q2.

Although revenue figures proved to be positive, cash wagering increased 77% year-on-year to £99m, however, this was 7% lower than the £106.7m recorded in the second quarter of the current year.

The number of first time players soared by 147% from 15,568 in the third quarter of 2016 to 38,424, whilst transactions jumped 255% to £132.3m.

The operator said that an increase in its Managed Gaming Solutions division during the third quarter was driven by a pivot towards higher margin activities.

Nektan’s Chief Executive, Leigh Nissim comments: “I’m encouraged by Nektan’s continuing improvements in trading and the continuing realignment of the company to a leading international gaming solutions and services provider.

“In our managed solutions business in Europe, we have focused internationally on optimising the managed casino network, improving the return on our player marketing spend for certain partner brands and proactively controlling our operating costs across the casino network.

“The net impact of both adjustments is positive – the network continues to grow and a the same time our margins are improving. The good progress of our North American business in signing new customers also positions the business well for future success.

Nissim adds: “Nektan continues to make positive progress across our businesses in Europe and the US, powered by our proprietary core platform, Evolve, helping the company to strengthen its position as an international gaming provider, offering solutions and services that are fresh, high quality and tangibly different from other suppliers.”

Shares went up 21% on Wednesday afternoon after Nektan released the positive results.