The German fintech firm Naga has released its consolidated half-year report as of 30 June 2023, highlighting a mixed performance across key metrics compared to the previous year. Sales revenue dropped from EUR 35,018,000 to EUR
25,260,000 in the same period of the previous year.
Of the reported revenue amount, EUR 19,083,000 came from the
brokerage business, where 74% (compared to 55% from the previous period) came
from Naga Markets, while 26% (compared to 45% from the previous period) came
from Naga Global.
A Boost in Crypto Asset Trading
Besides that, EUR 5,501,000 (compared to EUR 1,253,000 from the previous year) in revenue came from trading in crypto assets. According to Naga, the steep decline in trading revenue was mainly due to a change in marketing strategy compared to the same period of the previous year. The strategy no longer targets an increase in revenue but
focuses on profitability.
Naga’s number of transactions jumped to 4.9 million in the
first half of 2023, but the trading volumes were unchanged compared to the
previous year, at EUR 69 billion. In the previous year, the figure for real
money trades was 4.2 million, and the trading volume was EUR 69 billion.
Despite the decline in output, the multi-asset trading
platform moved from a loss of EUR 2,742,000 to 3,134,000 in earnings before
interest, taxes, depreciation, and amortization. As a result, the company
narrowed its losses for the period from EUR 19,055,000 to EUR 1,698,000.
A Decline in EPS
Additionally, the company’s undiluted earnings per share were EUR 0.03, a decline from EUR 0.35 reported in the same period of the
previous year. The diluted earnings per share for the period similarly dropped
from EUR 0.35 to EUR 0.03.
For the financial period, Naga’s current liabilities
included customer deposits worth EUR 11,340,000, an increase compared to EUR
10,361,000 in the previous year. Trade payable was 2,044,000, a drop from EUR
3,241,000. The company said that it will maintain its forecast for 2022, where
the Board expects lower revenue compared to the previous year and an increase
in positive EBITDA.
Last year, Naga announced that its president, Blen Blinski,
had resigned as CEO to assume the role of Chief Information Officer, where
he will “take over all our tech-related and innovation matters.” Michael
Milonas was named the new CEO.
This article was written by Jared Kirui at www.financemagnates.com.
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