Nektan Q2 revenues up 83% on strong B2B growth
Double-digit rise reported in all key verticals as European business looks to break-even by end of 2019 financial year
Nektan recorded an 83% year-on-year increase in its total gaming revenues for the second quarter of its 2019 financial year, the company has reported.
Total gaming revenues for the quarter topped £8.6m, up from the £4.7m reported during the same period in 2018. Revenues were buoyed by a 74.1% year-on-year rise in cash wagers, which rose to £222.5m from a previous Q2 financial year 2018 high of £127.8m.
The company attributed these rises to its higher margin B2B division, where gross gaming revenues grew by 700% when compared to Q1 19, rising to £2.4m.
Nektan highlighted the “significant” increases in both the numbers of unique players using its platform, which rose by 1811% to 77,961 and its cash wagering, which increased by 1229% to £54.5m during the quarter when compared to Q1 FY19.
Nektan CEO Lucy Buckley hailed the growth of the B2B division, adding that this demonstrates “the huge potential that the division has in fuelling our growth going forward”.
During the period, the number of partners using the Nektan B2B platform increased from six to 10, with the company concluding partnerships with BetVictor and 1xBet.
Net gaming revenues from the company’s B2C white label managed casino solution also grew during the quarter, rising by 31.9% year-on-year to £6.2m from a previous Q2 18 high of £4.7m.
Buckley added: “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 also confirmed that the expected sale of 57.5% share capital in its US subsidiary Respin is on track and should be concluded before the end of Q3.