Leading B2B gaming solutions and services provider Nektan published its financial results for the year ended June 30, 2016. The Gibraltar-based company also posted updates on its Q1 results and revealed information on its proposed equity fundraising.
The provider’s Net Gaming Revenue (NGR) for the period ended June 30, 2016, increased by 1,402% to £5.7 million. During this period, the company boosted its underlying growth momentum by expanding its registered customer base. Nektan attracted 48,723 First Time Depositing players and processed over 39.5 million transactions from spins and bets in the financial year ended in June 30. Total cash wagering jumped to £150 million, an increase of 1,128%.
The 29 new partnerships Nektan established during the period ended June 30, 2016, formed the basis of its continual growth. Nektan added more value to its casino offering by focusing on product development improvements and the acquisition of new players. In addition, the company released its Rapid Games product, a mobile in-venue cash wagering solution, which allows casino players to place wagers directly from their portable devices when they are in a given gambling venue.
Nektan’s positive results continued into Q1 of 2017, with the company’s NGR increasing by 295% to £2.1 million. The number of First Time Depositing players for Q1 grew by 115% to 14,037. Cash wagering increased by 328% to £65.9 million. On August 22, Nektan signed an agreement with Buckingham HMB Ltd for an asset disposal and separate, five-year license for three of its gaming brands for £1.95 million in cash.
Nektan disclosed it increased its ownership of mobile on-premise solution provider Respin Inc from 50% to 85% as of December 21, 2016. This resulted in the conversion of an additional funding to an increased membership interest, allowing Respin Inc to operate as Nektan’s subsidiary from a joint venture.
The company offered an equity fundraising which aims at raising up to £2.2 million in order to provide near-term capital through a subscription for new shares. The subscription and the offer will be priced at £0.275. When the subscription is completed, shareholders will be able to subscribe for new ordinary shares with a total value of £0.5 million. The company revealed that the equity fundraising it proposed has already attracted sufficient interest on behalf of investors which would enable Nektan to complete the subscription.
At the present moment, the gaming solutions provider has £10 million of Series A Convertible Loan Notes or CLNs. Nektan reported it agreed with noteholders to amend the terms of the Series A CLNs, allowing it to repay the loan notes after April 30, 2019.
Nektan’s Chief Executive Officer Leigh Nissim commented the company’s focus remains on accelerating its growth momentum and optimizing its casino network by establishing new partnerships and adding more quality games with improved features to attract the interest of new players and retain that of existing ones. Nissim shared Nektan expects to increase its customer base among tribal casinos now that Respin Ltd operates as its subsidiary.
The Chief Executive Officer went on to say Nektan intends to continue investing in its proprietary platform, Evolve, which powers the company’s businesses in Europe and North America. Nektan’s use of flexibility and speed will maximize the company’s revenue in both markets and guarantee a profitable growth to its shareholders, Nissim concluded.
