Issuing a pre-close trading update, gaming technology platform and services provider Nektan expects to deliver significant revenue growth while falling short of its forecast of tipping in profit this summer.
In a statement, Nektan said it expected to deliver “year-on-year, double-digit revenue growth” in the financial year to June 30, 2019, and “a significantly reduced EBITDA loss in FY19 compared to the previous year.”
Nektan said its target of achieving EBITDA breakeven this year “will not be achieved due to the slower trends experienced in Q3 continuing into Q4, with a number of factors impacting first-time deposits and deposits, including the continued effect of increasing UK regulations around player marketing and verification.”
Lucy Buckley, CEO of Nektan, added: “In our B2C business, management has taken a number of actions in conjunction with the company’s partners, that are delivering positive underlying results.
“We expect this to translate into better performance including increased margins. This, combined with a pipeline of new partners and product launches, underpins the board’s confidence that Q1 FY20 should see a return to quarter-on-quarter growth that has been delivered by the company in nine out of the last 12 quarters.
“Nektan’s B2B business continues to make exciting progress; our pipeline of opportunities is continuing to develop and has seen engagement with an increasing number of larger market participants globally,” said Buckley. “We expect a number of these to go live during the remainder of 2019, which has the scope to have a transformational impact on our business.”
Buckley said the company would continue to focus on achieving profitability but stopped short of putting a timeframe on doing so.