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NEWS 25 March 2019

Nektan achieves EBITDA break-even alongside strong revenue growth

By Tim Poole

Nektan achieved EBITDA break-even and saw its revenue grow 48% year-on-year, to £13m ($17.1m), for H1 of its financial year.

CEO Lucy Buckley hailed a "key milestone" for the supplier and targeted improving profitability for the rest of FY19.

Alongside strong revenue growth, Nektan reported £336,000 in total adjusted EBITDA for the trading period, which was a significant improvement on a £916,000 loss for the corresponding six months in 2017.

While operating loss from continuing operations stood at £201,000, this was another considerable year-on-year rise from a loss of £1.9m.

Loss before taxation from continuing operations was £843,000, compared to £2.9m.

CEO Buckley said: "Achieving EBITDA break-even during the period is a key milestone for Nektan and our key focus for the remainder of FY19 is on maintaining and improving profitability. EBITDA break-even was reached due to both increased revenues and operational efficiencies."

As part of that profitability drive, the supplier plans to sell the majority shareholding of its US subsidiary, Respin.

Buckley said: "While we believe in our US mobile casino product, the proposed sale of the majority shareholding of our US subsidiary is a major contributor to our profitability plan, by removing Nektan funding for the US going forward, but retaining a material stake in the emerging US market."

RELATED TAGS: Online | Casino | Financial
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