NEKTAN Plc, one of the leading providers of mobile and desktop gaming solutions, announced details about its financial performance during the period from May to December 2015.
According to the released data, the company has suffered a wider pretax loss, but it registered a revenue increase despite the considerable delay of an important contract. NEKTAN officials remained hopeful that the costs will be even lower by the end of the year.
NEKTAN announced that the pretax loss reached £6.6 million as compared to £3.9 million a year earlier. As for the revenue, it jumped to £1.6 million, which is £1,350 million more than what was reported a year ago.
The company pointed that a serious contract delay was among the main factors that had a negative impact on both the revenue and EBITDA. NEKTAN spokesperson also shared that the aforementioned £7 million contract should be launched no later than the end of the year.
The administration costs also saw an increase of £800,000 and reached £4.3 million during the aforementioned period. However, NEKTAN representatives announced these costs have been promptly addressed and they were to be reduced to £280,000.
In a special statement on the matter Gary Shaw, NEKTAN’s CEO revealed that regardless of the delayed contract, the company sees an impressive growth in net revenue. He also emphasized how important it was for the company to strengthen its positions on the European and US markets and remained confident that the revenue growth tendency will continue.
Mr. Shaw also added that Nektan is now authorised to provide mobile gaming solutions in California, Nevada, Oregon and Louisiana. He also mentioned that Xtraspin, the first product of Respin’s offering, boosted casino operators’ revenue by 50%.
As for NEKTAN’s performance on the European market, he said that the delayed contract was of crucial importance for company’s further development and NEKTAN and its partner were both hoping for an accelerated launch.
Market analysts defined several key points that have led to the consistent revenue growth. First, the Real Money Gambling on the European market was among the major factors for the strong revenue increase. Second, NEKTAN has taken imminent actions towards reducing the monthly costs by 45% by April.
Third, NEKTAN works in collaboration with Spin Games LLC and Respin LLC and it continues its expansion on the US gambling market.
The joint venture of NEKTAN, Fred Done (Betfred’s founder) and Warren Jacobs (Active Win Media Director) resulted in the launch of NEKTAN Marketing Services, which further boosted company’s revenue.
Last but not least, the company announced a new fundraising amounting to £2.93 million.
An extraordinary general meeting was held on March 29 and all resolutions that have been put forward were unanimously passed.
