NAGA Reports Solid Q3 2020 Revenue, Launching Digital Bank

The fintech group is entering new markets as well.

German social trading-focused brokerage, NAGA Group (XETRA: N4G) announced on Monday its financials for the third quarter of 2020, showing record sales and trading volume.

The reported figures show that the broker’s sales figures jumped 506 percent year-on-year to 7.1 million euros last quarter from 1.17 million euros in Q3 2019. This resulted in an EBITDA of 1.9 million euros.

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Apart from sales, the trading volume of the broker additionally jumped to over 33 billion euros for the period, a quarter-on-quarter jump of 22 percent. Year-on-year, that is more significant as the volumes in Q3 last year was only 13 million.

NAGA highlighted that the trading volumes were boosted by the 40,000 new accounts opened with it last quarter.

“We are happy with Q3,” Benjamin Bilski, CEO of NAGA, said. “Especially in light of the seasonality and the lower client activity during summer, we once again have shown that our growth strategy pays off and is sustainable.”

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“…we have delivered a very solid EBITDA ratio despite increased expenses in growth. Given the growth in our active user base, we managed also to improve our platform experience and internal processes significantly to ensure further scalability.”

Entering the Digital Banking Arena

Apart from its existing brokerage business, NAGA is further entering the hyped digital banking industry. The group revealed that it will launch its challenger bank called NAGA PAY, on November 15.

The platform has started pre-registration of customers and already saw ‘thousands’ of potential users, the company detailed.

As Finance Magnates reported, NAGA made a few key appointments recently and is expanding beyond its regular markets. It has already established local entities in Australia and South Africa and is now seeking regulatory approvals in those markets.

“The major rationale after Q1 was to enlarge our customer base, invest in our brand exposure and set up the company for scalability,” Bilski added. “NAGA has its best cash-flow situation, highest average monthly volumes and the highest number of active users (as per September 2020) since inception. For the next quarters we need to invest into brand exposure, marketing and grow our team to offer a world-class trading experience by ensuring operational stability.”

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