Regardless of a
important income decline, a notable deepening of web loss and 40% employees cuts
in 2023, the supervisory board of the publicly listed NAGA Group AG (XETR: N4G) is
happy with the outcomes achieved over the previous 12 months. In accordance with firm
representatives, they managed to “obtain the deliberate turnaround in
earnings” by means of a optimistic change in EBITDA and value discount.
NAGA’s Income Down, Internet
Loss Deepens
The
consolidated assertion of complete revenue revealed by NAGA over the
weekend reveals that revenues shrank 32% from €57.6 million reported in 2022 to
€39.7 million in 2023. The outcomes turned out to be worse than the preliminary outcomes that the corporate reported firstly of this 12 months.
As a
end result, gross revenue fell to €31.9 million from €48.5 million, and web loss
deepened by virtually 40% from €44.1 million to €60.9 million final 12 months. NAGA
defined that the biggest single impact on the web revenue “was the necessity to
acknowledge an impairment loss on the goodwill of the Brokerage enterprise – of €57.0 million (earlier 12 months: €15.3 million) – as decided by an impairment
check.”
The bigger
annual loss additionally resulted in a better loss per share, which elevated to €1.13
from €0.82 in 2023.
“Income
decreased as anticipated, specifically, resulting from lowered advertising and gross sales
measures in a difficult market setting for on-line brokers and the
discontinuation of NAGA Coin buying and selling,” the corporate defined.
In its
narrative to the considerably weaker report, NAGA focuses on the
positives: lowered working prices and a rise in EBITDA (earnings
earlier than depreciation and amortization).
NAGA Considerably Diminished
Advertising and marketing and Promoting Prices
The net dealer’s price discount was most noticeable in advertising bills, which have been lowered from €28.3
million to €4.6 million.
This transfer
resulted within the lowest buyer acquisition price per buying and selling account within the
firm’s historical past, at €380 in comparison with €1,510 within the earlier 12 months.
Regardless of the
lowered advertising efforts, NAGA reported development in a number of non-financial
metrics, together with energetic customers, trades, and buying and selling quantity. The corporate additionally
famous enhancements in user-related figures corresponding to common exercise, portfolio
measurement, and lifelong worth.
“The
traded quantity amounted to 143 billion euros (earlier 12 months: 137 billion euros).
The variety of energetic customers on the finish of the 12 months was over 21,000 (earlier
12 months: 18,700). Because of this, all metrics per person confirmed a powerful upward development
with greater common exercise, portfolio measurement, and lifelong worth,” the
firm commented within the annual report.
Whereas
slicing prices, NAGA additionally needed to half methods with a big variety of staff.
Employment in 2023 was lowered by over 40%, with 73 out of 173 folks working
in 2022 dropping their jobs. This allowed the corporate to attain financial savings of
round €4.2 million.
In April, Loukia Matsia introduced her appointment because the Head of Compliance and Anti-Cash Laundering (AML) at NAGA. Concurrently, NAGA shareholders ratified the merger with CAPEX.com, which was initially declared in December of the earlier 12 months. A big majority, 99.81 %, of NAGA shareholders supported the merger through the extraordinary normal assembly on April 12.
This text was written by Damian Chmiel at www.financemagnates.com.
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