Company Announcements

31 July 2019

NEKTAN PLC

("Nektan" or the "Company")

Q4 FY19 TRADING UPDATE

Nektan plc (AIM: NKTN), the fast growing, award-winning international gaming technology platform and services provider, announces its trading update for the fourth and final quarter of its financial year ended 30 June 2019 (Q4 FY19).

During FY19, total revenue increased by 14.8% over FY18 with good growth across both the B2C and B2B segments, and a record number of partners live.  As previously announced, our Q4 FY19 KPIs continued to be impacted by similar conditions that affected Q3, including increased UK taxation and player verifications.  Management has taken decisive action to ensure the Group is structured appropriately to these market conditions, whilst providing the strategic platform for planned expansion and growth in international markets.

Highlights

·      Strong and growing global sales pipeline across both B2C and B2B.

·      B2C - 13 new white label casino sites were launched in Q4 FY19, in addition to the expansion of the B2C product offering with the launch of a new mobile-first bingo product, which is now available across the white label network of casino sites.

·     B2B - 12 partners currently live, up from 10 in Q3 FY19, with a number of partners due to go live during the current quarter. Recent launches include Volt Casino and MoPlay, along with entry into Africa with two of the leading gaming companies, Betika and BetLion, using E-Lite, the Company's B2B content distribution platform.

·     Total number of games providers into Nektan's casino platform has increased to 42 from 38 in Q3 FY19, with the addition of Rocksalt Interactive, ReelFeel, Rogue Gaming and Inspired Gaming.

·    Four new games have been developed in partnership with Rocksalt Interactive and ReelFeel, leading to increased higher margin content for the Company, with more games in the development pipeline.

Full-Year KPIs

Q4 KPIs

The figures stated above are all unaudited.
*Net Gaming Revenue (jackpot adjusted) from B2C and Revenue Share from B2B
**adjusted

Lucy Buckley, Chief Executive Officer of Nektan, said:

"With an established proprietary technology platform and growing sales pipeline, Q4 has seen us go live with more B2C and B2B partners putting us in a strong position to accelerate our growth and increase revenues further over the course of FY20. 

In the B2B division, we continue 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. 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.

Whilst Q4 saw a continuation of the B2C trading conditions we experienced in Q3, we have taken decisive action to structure the Company in response to the changing gaming environment and to provide the strategic platform for expansion and growth in international markets. Furthermore, a number of steps to enhance our product offering, including the launch of bingo and improved player journeys, have been completed in Q4 and we look forward to the new financial year with optimism."

For further information on the Group, please contact: 

Further information on Nektan can be found on the Group's website at www.nektan.com. 

About Nektan:

Nektan is a fast growing, international gaming technology and services provider, specialising in mobile casino. It licenses its proprietary technology to leading operators, including BetVictor, and provides end-to-end technology and white label casino services for leading brands, including News International's The Sun Play.

Nektan's full end-to-end technology platform, Evolve, enables the management of the full customer experience and back-office operations, allowing partners to focus on marketing the product to their consumers.

The E-Lite platform is Nektan's B2B gaming content aggregator and bonusing platform that delivers a wide range of premium content from the world's leading game studios. It is an easily-integrated add on module for operators, giving them an array of options and flexibility on how they manage and distribute a breadth of premium gaming content across their networks.

Nektan has a material stake in US-based interactive gaming operator Rapid Games, which provides US land-based casinos with an in-venue mobile gaming solution. It allows operators to add mobile technology and content making products accessible to players across both cabinets and mobile devices inside casinos.

Headquartered in Gibraltar, Nektan is regulated by the Gibraltar Licensing Authority, the UK Gambling Commission and the Information Commissioners Office. As a socially responsible license holder, Nektan endeavours to deliver a safe, secure and robust player gaming experience.

Nektan plc was admitted to the AIM market of the London Stock Exchange in November 2014.