Nektan nears positive earnings after record European revenue

Gambling software provider Nektan saw its shares rise on Wednesday after recording record quarterly net gaming revenue driven by European operations.

For the three months ended 30 June, net gaming revenue in Europe rose 12.6% to £6.4m compared to the prior quarter and rising 64.6% compared to the same quarter last year after the company launched multiple new sites to bring gaming content to a record number of 143 global casino brands.

Gary Shaw, interim chief executive, said: “Since becoming a public company in 2014, Nektan has seen only one quarter-on-quarter decline in revenue, which was during this usually quieter period of activity in the same period last year, so we are very encouraged to see such a positive quarter and expect this success to continue.”

Shaw added that the company is on-track to see its European division reach EBITDA break-even within this financial year.

Meanwhile, Nektan is in a “very attractive position” in the US where the supreme court opened the door for legalised sports betting earlier this year.

The AIM-traded company completed back-end integration, regulatory approval and white label customisation with a major tier-one operator for launch in-venue in Q2, while Metric Gaming’s betting platform has been integrated to Nektan’s Evolve platform.

“Our North America division is making progress and is due to go live shortly with a tier-one operator. We are positioned to take advantage of the opening up of the sector in the United States with a pipeline of upcoming opportunities," said Shaw.

Nektan’s shares were up 7.5% at 21.50p at 0850 BST.