Gaming developer and distributor NEKTAN has just announced its interim financial results for the six-month period ended December 31, 2014.
The company posted revenue of £250,000 for the period in question. By comparison, the amount of £1.33 million was generated for the half-year period ended December 31, 2013. NEKTAN officials explained that the significant reduction was due to the termination of several sports betting licensing deals. The company decided on this move in order to be able to focus its attention on the further development of its gaming platform Evolve.
In fact, the amount of £1.5 million was invested in the aforementioned product as well as in the development of games and other software in collaboration with US-based company Spin Games during the period in question.
Those major investments resulted in net loss amounting to £3.9 million, compared to £3.1 million posted in 2013.
NEKTAN announced that customers spent the total amount of £3.8 million in casino cash bets in the period in question. Those resulted in net gaming revenue from real money gaming operations totaling £115,000. The company pointed that material growth was seen since the introduction of its own casino brand – Chomp Casino.
Revenue from content licensing amounted to £21,000. It was generated out of an agreement with a third-party operator. The company also inked a deal with mobile gaming operator LeoVegas in the half-year period in question.
Adjusted EBITDA decreased more than £1 million to reach £2.36 million, as compared to £1.18 million posted for the six-months ended December 31, 2013.
Both basic and diluted loss per share amounted to £0.2, compared to £0.21 reported for the same period in 2013.
The company also announced that it had signed a £1.2 million loan agreement with Disruptive Tech Limited. The money will be used for meeting certain capital requirements for the next three months.
David Gosen, who took the position of a Chief Executive Officer of NEKTAN earlier in 2015, commented that the company intends to further expand its business on the European and US markets. He said that the first half of this fiscal year was a “rewarding” period for NEKTAN and it managed to gain a significant momentum concerning all its key operations.
At present, the company works with a total of 10 white-label partners, 2 content licensing ones, a bingo partner, and 2 house brands in Europe. As for the US, NEKTAN inked a deal with gaming developer Spin Games in November 17, 2014. This partnership resulted in 9 casinos expressing interest in being delivered mobile gaming services. One of those gambling venues has already gone live with such products in the beginning of 2015 and according to initial estimations, the financial results will be quite pleasing.
