International gaming technology platform and services provider, Nektan, has applauded its expansion efforts after reporting an increase of 5.9 per cent in revenue in its Q3 FY19 trading update, with further hopes to “remain on track to be break-even in FY19”.
The group detailed that its current growth had been supported by its content aggregation deals signed with leading studios Leander and Rock Salt, with its European division yet to make a profit.
Nektan has reported that its current growth trajectory remains on track to break-even for the financial year, with the Board expecting to see an improvement to trading in the next financial quarter.
Lucy Buckley, Chief Executive Officer of Nektan, said: “Q3 has been another record quarter of growth for our rapidly emerging B2B business. We continue to see strong demand for our award-winning casino technology as evidenced by the signing of 7 significant B2B partners during Q3 FY19.
“Having achieved EBITDA break-even in H1 of this financial year, a key achievement for Nektan, we remain on track to be break-even in FY19. As reported in our interim results announcement on 25 March 2019, whilst the headline revenue figures are slightly down on Q2, our growing portfolio of partners means that we do not expect a repeat of what was a quiet period by historical standards.
“Developments on the sale of our majority stake in the US division Respin are progressing and we expect to conclude this shortly and before 30 April 2019. This transaction will mean us maintaining a material stake in the emerging US market while removing the cash burn of this business..”
Nektan’s B2C division has struggled in Q3 FY19 after experiencing a decline in KPIs. This occurred as a result of a changing regulatory landscape surrounding player marketing and verifications and a delay in the granting of the Company’s Swedish operator licence.