OANDA to Exit Malta in March, to Run European Business from Poland

NAGA Group Posts 51% Revenue Rise in H1 2022, Will Re-Enter UK

by Arnab Shome
  • The company generated over EUR 24 million in 2022 only from European businesses.
  • It will re-enter the UK markets next year.
NAGA
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NAGA Group (XETRA: N4G) has published its half-yearly financials for the period until 30 June 2022, reporting consolidated revenue of EUR 35 million improving from EUR 23.2 million in the first six months of the previous year. It was a year-over-year increase of about 51 percent.

NAGA Posts H1 2022 Results

In addition, it generated a consolidated EBITDA of negative EUR 2.7 million in the six months compared to a negative figure of 0.2 million in the previous year. "The EBIT and net profit were significantly negatively impacted by depreciations, mostly driven by the strong devaluation of crypto assets," NAGA stated.

Out of the total, the company brought in revenue of EUR 18 million in the first quarter, Finance Magnates reported earlier. Thus, the Germany-listed firm generated revenue of EUR 17 million in the second quarter of 2022.

The European business of NAGA generated over EUR 24 million in 2022, most of which came from Germany.

"2022 was a challenging year for NAGA. Coming out of a very bullish and promising market environment in 2021, our plans were ambitious and clear," NAGA added. "However, the war in Ukraine, the pressure around monetary policy changes, the rising inflation, and the crypto crash triggered by Terra/Luna, Celsius, and FTX dominated the (very negative) headlines this year."

Reduced Costs and Strong Client KPIs for NAGA

Moreover, the company highlighted its efforts for extensive cost reductions. It has reduced marketing costs for all three platforms - NAGA Trader, NAGAX, and NAGA Pay - and slashed its workforce by 20 percent. It even "significantly reduce[d] research and development costs for NAGAX and NAGA Pay," along with operating costs for both.

According to the half-yearly report published by NAGA, it has reduced the cost base from EUR 20 million in Q1 to EUR 12 million in Q4. Its per-customer acquisition cost dropped significantly from EUR 1,609 at the year's peak to EUR 613.

Despite the reduced costs, the other performance KPIs of the company has improved. The number of average monthly first-time depositors on the company increased from 1,235 in Q1 "to now 2,114." On top of that, the average number of monthly transactions increased from around 664,000 in Q1 to 771,000 in Q4, while the average number of active traders jumped to 28,000 from 27,000 in Q1.

Check out FMLS21 session on "Analyzing Trader Activity: Where is The Alpha," where NAGA's Director of Education, Andreas Thalassinos, was a panellist.

NAGA Re-Entering the UK

The company gained Estonian and Seychelles licenses this year and is now planning to re-enter the United Kingdom markets in 2023.

"Central to our growth objectives is the targeted re-entry into the UK market," NAGA added. "By year-end 2021, we had exited the UK - NAGA's best market to date and also the largest CFD market in the world - and had to reallocate budgets to other countries, resulting in various inefficiencies (including an increase in customer acquisition costs). We aim to re-enter the UK market and reactivate our existing customer base by Q2 2023. This will enable us to achieve immediate EBITDA effects at minimized costs."

Market Performance

The XETRA-traded share price of NAGA took a massive hit in 2022, continuing its downward rally since the end of October 2021. Since January, the broker's share price has plummeted by more than 85 percent. However, following the publication of the half-yearly report, NAGA's share prices strengthened by more than 4.5 percent as of press time.

Naga share price

NAGA Group (XETRA: N4G) has published its half-yearly financials for the period until 30 June 2022, reporting consolidated revenue of EUR 35 million improving from EUR 23.2 million in the first six months of the previous year. It was a year-over-year increase of about 51 percent.

NAGA Posts H1 2022 Results

In addition, it generated a consolidated EBITDA of negative EUR 2.7 million in the six months compared to a negative figure of 0.2 million in the previous year. "The EBIT and net profit were significantly negatively impacted by depreciations, mostly driven by the strong devaluation of crypto assets," NAGA stated.

Out of the total, the company brought in revenue of EUR 18 million in the first quarter, Finance Magnates reported earlier. Thus, the Germany-listed firm generated revenue of EUR 17 million in the second quarter of 2022.

The European business of NAGA generated over EUR 24 million in 2022, most of which came from Germany.

"2022 was a challenging year for NAGA. Coming out of a very bullish and promising market environment in 2021, our plans were ambitious and clear," NAGA added. "However, the war in Ukraine, the pressure around monetary policy changes, the rising inflation, and the crypto crash triggered by Terra/Luna, Celsius, and FTX dominated the (very negative) headlines this year."

Reduced Costs and Strong Client KPIs for NAGA

Moreover, the company highlighted its efforts for extensive cost reductions. It has reduced marketing costs for all three platforms - NAGA Trader, NAGAX, and NAGA Pay - and slashed its workforce by 20 percent. It even "significantly reduce[d] research and development costs for NAGAX and NAGA Pay," along with operating costs for both.

According to the half-yearly report published by NAGA, it has reduced the cost base from EUR 20 million in Q1 to EUR 12 million in Q4. Its per-customer acquisition cost dropped significantly from EUR 1,609 at the year's peak to EUR 613.

Despite the reduced costs, the other performance KPIs of the company has improved. The number of average monthly first-time depositors on the company increased from 1,235 in Q1 "to now 2,114." On top of that, the average number of monthly transactions increased from around 664,000 in Q1 to 771,000 in Q4, while the average number of active traders jumped to 28,000 from 27,000 in Q1.

Check out FMLS21 session on "Analyzing Trader Activity: Where is The Alpha," where NAGA's Director of Education, Andreas Thalassinos, was a panellist.

NAGA Re-Entering the UK

The company gained Estonian and Seychelles licenses this year and is now planning to re-enter the United Kingdom markets in 2023.

"Central to our growth objectives is the targeted re-entry into the UK market," NAGA added. "By year-end 2021, we had exited the UK - NAGA's best market to date and also the largest CFD market in the world - and had to reallocate budgets to other countries, resulting in various inefficiencies (including an increase in customer acquisition costs). We aim to re-enter the UK market and reactivate our existing customer base by Q2 2023. This will enable us to achieve immediate EBITDA effects at minimized costs."

Market Performance

The XETRA-traded share price of NAGA took a massive hit in 2022, continuing its downward rally since the end of October 2021. Since January, the broker's share price has plummeted by more than 85 percent. However, following the publication of the half-yearly report, NAGA's share prices strengthened by more than 4.5 percent as of press time.

Naga share price
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