Nektan anticipates higher revenue in second half of the year

1st Jul 2016 16:09

(ShareCast News) - Mobile real money gaming provider Nektan expects to have good growth in revenue in the second half of the financial year compared to the first.It anticipates net gaming revenue to grow in the six months ended 30 June to $4.2m from £1.6m.Total cash bets increased to £104.1m from £45.4m and first time depositors playing games increased by 77% to 30,997.Nektan launched 29 new partners in its networks the past year, with 110 new games added from providers such as IGT, NetEnt and SciGames.The company also launched a marketing service for its partners.In December the company reviewed its costs and subsequently reduced fixed costs to about £340,000 a month from £490,000.The AIM listed company said its losses before interest income and expenses, income tax, depreciation and amortisation (LBITDA) were within expectations and its joint venture with Respin, a US mobile technology developer, received regulatory approval for its Rapid Games product, a class II mobile in venue gaming solution.The company has cash outflows for quarterly payments of gaming revenue taxes and convertible loan note interest. Low earnings before interest, tax, depreciation and amortisation (EBITDA) reduced the company's cash levels, so Nekta said it is considering its financing options by either seeking new investors, debt finance or other financial support from key stakeholders, seeking a strategic partner or to realise value from its trading assets.Chairman Jim Wilkinson said: "The progress in the business this year is encouraging. Our focus on building the foundations for continued growth has been positive, with the Evolve 2 platform now established internationally and our business operations maturing as we expand. We plan to develop the business further across both Europe and the US as both mobile casino markets expand."Shares in Nektan were down 24.59% to 46p at 1653 BST.