London-listed gaming technology firm Nektan expects to return a profit in Europe by June 30, 2019, following record quarterly revenues in the three months to December 31, 2018.
Across the group’s B2B and B2C operations (excluding the US), total gaming revenue jumped 28.4 per cent to £8.6m in the three months to the end of 2018, up from £6.7m on the prior quarter and leaping 83 per cent against the same period in 2017.
In a statement released this morning, Lucy Buckley – appointed CEO in December – said: “”This record-breaking quarter for the group has not only highlighted that we have made significant enhancements to our technology, but we are becoming a firmly established business that is on track to be profitable in our core European business by the end of this financial year ending 30 June 2019.”
Nektan’s B2C white-label managed casino business saw a slight drop in net gaming revenue against the preceding quarter, down 3.1 per cent to £6.2m, although this was still a near 32 per cent jump against the NGR posted in the same period in 2017. The company attributed the fall to higher than expected player wins and bonusing.
The B2B business saw massive growth, albeit from a near-zero starting point. Gross gaming revenue was up seven-fold, to £2.4m in the three months to the end of 2018, helped by Nektan going live with four new operators, including BetVictor and 1xBet, taking the total number of B2B partners into double figures for the first time.
“Looking back at this quarter and ahead, we are very excited about the size of partners we are now attracting,” said Buckley. “Our BetVictor contract win with this tier-one operator is a landmark for Nektan and we are proud to have them believe in the breadth and depth of our offering. The B2B figures continue to demonstrate the huge potential that that division has in fuelling our growth going forward.
“Another significant highlight from the end of the last quarter was the announcement of potential external investment in our US business. Once completed, we believe these developments will put Nektan in its strongest and most secure position to date.”