31st Mar 2016 08:42
LONDON (Alliance News) - Nektan PLC on Thursday reported a wider pretax loss in the first half of its financial year as it booked higher costs, but revenue rose despite a significant contract delay and it said it expects to lower costs throughout the remainder of the year.
The B2B mobile gaming platform and content provider said its pretax loss in the six months ended December 31 widened to GBP6.6 million from GBP3.9 million in the same period the year before, even though revenue multiplied to GBP1.6 million from GBP250,000.
Nektan said one large contract worth GBP7 million was delayed in Europe, hitting both revenue and earnings before interest, tax, depreciation and amortisation. It should now be launched towards the end of the year.
Despite this, revenue still grew on a rise in first time depositors, higher cash stakes and deposit amounts.
Administration costs increased in the period to GBP4.3 million from GBP3.5 million, but Nektan said it is on track to reduce monthly administration costs to GBP280,000.
It also booked a GBP745,000 impairment charge after reassessing the recoverability of two debtor balances, as well as higher marketing costs and finance expenses.
"Excluding the effects of this delayed contract, we are continuing to see significant growth in our net gaming revenues and remain confident in the outlook for the full year and beyond as Nektan continues to strengthen its position and to deliver strong momentum in our key markets in Europe and the US business," Acting Chief Executive Gary Shaw said in a statement.
Shares in Nektan were trading up 1.2% at 76.50 pence on Thursday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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