Nektan PLC (LON:NKTN) has reported a 157% rise in revenue for its first half, while also managing to reduce its adjusted underlying loss in the period, and could see EBITDA break-even by the end of this current financial year.
For the six months ended December 31, 2019, the online gambling software group reported revenues from continuing operations of £797,000, up from £310,000 in the prior year, while its adjusted EBITDA loss fell to £1.65mln from £1.77mln.
Looking ahead, interim chief executive Gary Shaw said the company had “a strong pipeline of partner launches from leading global businesses to deliver their online gaming solutions”, with the roll-out of these sites expected to take place over the next 2-3 months.
Shaw said this roll-out will “significantly transform the revenue profile of the group” and help drive it towards “EBITDA break-even by the end of this current financial year”.
However, Nektan said the coronavirus outbreak was creating “material uncertainty for the sector” and that it was currently in discussions with advisors and stakeholders regarding its future, including but not limited to efforts to secure funding through issuing new equity to provide additional working capital.
Nektan shares held steady at 0.8p in mid-morning trading on Tuesday.