Nektan PLC Trading Update (1099D)

TIDMNKTN

RNS Number : 1099D

Nektan PLC

24 June 2019

24 June 2019

NEKTAN PLC

("Nektan", or the "Company")

Trading Update

Nektan plc (AIM: NKTN), the fast growing, award-winning international gaming technology platform and services provider, announces a pre-close trading update in relation to its financial year ending 30 June 2019 ("FY19").

The Board expects the Company to deliver year-on-year, double digit revenue growth and a significantly reduced EBITDA loss in FY19 compared to the previous year. The Group's target of achieving EBITDA breakeven in FY19 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, Chief Executive Officer of Nektan, said:

"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 twelve 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. 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.

We continue to focus on moving to profitability and look forward to providing a more detailed update in our Q4 FY19 trading announcement in July 2019."

For further information, please contact:

 
 Nektan 
  Lucy Buckley, Chief Executive Officer 
  Gary Shaw, Executive Officer                      [phone] 
 
 Stockdale Securities Limited (Nominated Adviser 
  and Joint Broker) 
  Tom Griffiths / David Coaten                      [phone] 
 
 Smaller Company Capital Limited (Joint Broker) 
  Rupert Williams / Jeremy Woodgate                 [phone] 
 
 Nominis Advisory (PR Adviser)                      [phone] 
  Angus Campbell                                     Email: [e-mail] 
 
 

Further information on Nektan can be found 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.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

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June 24, 2019 02:01 ET (06:01 GMT)