NAGA Group, a Germany-based
fintech company, saw a 36% year-over-year (YoY) drop in its group revenue
during the first quarter (Q1) of 2023. According to the neo-brokerage’s preliminary unaudited figures published on Tuesday, revenue generated during the
first three months came in at EUR 11.6 million, which is a decrease from the
EUR 18 million posted during the same period last year.
NAGA’s earnings before interest,
taxes, depreciation and amortization (EBITDA) collapsed by nearly 200%
from EUR 5 million in Q1 2022 to EUR 1.7 million at the end of March. During Q1
2022, group revenue and EBITA had surged by 63% YoY to EUR 18 million and 67% YoY to EUR 3 million, respectively.
In early February, NAGA reported
a profitable start of the year with a profit of about EUR 1.5 million
year-to-date. At the time, the Group said it generated a revenue of close to
EUR 6 million with expenses kept at around EUR 4.5 million.
As a fintech company, NAGA Group operates regulated
neo-broker, NAGA; neo-banking app, NAGA Pay; and cryptocurrency platform NAGAX.
However, despite the drop in revenue and EBITDA, the number of NAGA’s active
traders jumped 30% from 16,300 in Q1 2022 to 21,250 last month. A total of 2.9
million trades were also executed in Q1 2023, NAGA noted, adding that trades were worth EUR 37 billion.
“The assets under custody have
grown to EUR 35 million which is 45% more than the last reported HY1 2022
figure (EUR 24 million),” NAGA wrote in the update.
Furthermore, during the first quarter of the
year, NAGA said it brought down its monthly cost to an average of EUR 3.3
million, which is 40% lower compared to the average of EUR 5.5 million maintained during
the same period last year. The Group also “expects a further cost decrease by
around 20% during Q2 2023 whilst keeping its growth trajectory.”
In addition, NAGA said it spent
70% less on marketing during Q1 2023, with the figure dropping from EUR 11.5
million in Q1 2022 to EUR 3.5 million last month. Despite
spending less on marketing, NAGA, which also provides social trading services,
noted that it acquired 11% more new users at the end of March 2023.
“The improvement in the core
acquisition metrics is driven by the focus on marketing efficiency and
AI-driven marketing intelligence combined with a fully restructured marketing
strategy,” NAGA added.
NAGA
Open to Strengthening Capital Base
Speaking on the figures,
Benjamin Bilski, the Founder and CEO of NAGA Group, noted that the company is
satisfied with how it performed during the first quarter “especially looking at
growing user activity and well-improved user acquisition.”
Bilski further explained, “The
costs are under control and we have a good grip on the business expansion. We
are creating a foundation to run this business profitably and the past month’s
trend proves that.
“However, given the fact that we
incurred significant losses last year and despite the current merger
discussions, we are keeping our eyes open for opportunities to strengthen our
capital base to ensure we can execute our plans.”
Vida Markets’ new hire; funding of TerraPay, Bidget; read today’s news nuggets.
NAGA Group, a Germany-based
fintech company, saw a 36% year-over-year (YoY) drop in its group revenue
during the first quarter (Q1) of 2023. According to the neo-brokerage’s preliminary unaudited figures published on Tuesday, revenue generated during the
first three months came in at EUR 11.6 million, which is a decrease from the
EUR 18 million posted during the same period last year.
NAGA’s earnings before interest,
taxes, depreciation and amortization (EBITDA) collapsed by nearly 200%
from EUR 5 million in Q1 2022 to EUR 1.7 million at the end of March. During Q1
2022, group revenue and EBITA had surged by 63% YoY to EUR 18 million and 67% YoY to EUR 3 million, respectively.
In early February, NAGA reported
a profitable start of the year with a profit of about EUR 1.5 million
year-to-date. At the time, the Group said it generated a revenue of close to
EUR 6 million with expenses kept at around EUR 4.5 million.
As a fintech company, NAGA Group operates regulated
neo-broker, NAGA; neo-banking app, NAGA Pay; and cryptocurrency platform NAGAX.
However, despite the drop in revenue and EBITDA, the number of NAGA’s active
traders jumped 30% from 16,300 in Q1 2022 to 21,250 last month. A total of 2.9
million trades were also executed in Q1 2023, NAGA noted, adding that trades were worth EUR 37 billion.
“The assets under custody have
grown to EUR 35 million which is 45% more than the last reported HY1 2022
figure (EUR 24 million),” NAGA wrote in the update.
Furthermore, during the first quarter of the
year, NAGA said it brought down its monthly cost to an average of EUR 3.3
million, which is 40% lower compared to the average of EUR 5.5 million maintained during
the same period last year. The Group also “expects a further cost decrease by
around 20% during Q2 2023 whilst keeping its growth trajectory.”
In addition, NAGA said it spent
70% less on marketing during Q1 2023, with the figure dropping from EUR 11.5
million in Q1 2022 to EUR 3.5 million last month. Despite
spending less on marketing, NAGA, which also provides social trading services,
noted that it acquired 11% more new users at the end of March 2023.
“The improvement in the core
acquisition metrics is driven by the focus on marketing efficiency and
AI-driven marketing intelligence combined with a fully restructured marketing
strategy,” NAGA added.
NAGA
Open to Strengthening Capital Base
Speaking on the figures,
Benjamin Bilski, the Founder and CEO of NAGA Group, noted that the company is
satisfied with how it performed during the first quarter “especially looking at
growing user activity and well-improved user acquisition.”
Bilski further explained, “The
costs are under control and we have a good grip on the business expansion. We
are creating a foundation to run this business profitably and the past month’s
trend proves that.
“However, given the fact that we
incurred significant losses last year and despite the current merger
discussions, we are keeping our eyes open for opportunities to strengthen our
capital base to ensure we can execute our plans.”
Vida Markets’ new hire; funding of TerraPay, Bidget; read today’s news nuggets.
