The NAGA Group AG (XETRA: N4G) has reported a successful first half of the year, with revenue reaching EUR 19.5 million and preliminary EBITDA of EUR 2.3 million. The figures indicate an improvement in performance and a significant reduction in costs compared to the same period a year earlier.

NAGA Reports Profitable H1 2023

NAGA's revenue growth is reflected in its 4.9 million trades and a trading volume of EUR 69 billion in the first half of 2023. The number of active traders increased 22% compared to last year's period, and assets under custody grew 48%.

The company also decreased its direct marketing expenditure and attracted new clients. The average deposit size from these new customers nearly doubled compared to 2022. According to a letter from the company's new CEO, Michael Milonas, by the end of 2022, NAGA had welcomed more than 90,000 customers on its platforms.

In reaction to the preliminary financial data, the company's listing rose more than 8% on the German stock exchange to EUR 1.54. However, the gains have been capped at 5.6% at the time of writing, and the current price is EUR 1.5.

"We are thrilled with our performance and future growth prospects. Our focus on cost reduction and improved core KPIs has positioned us well for continued success in the global market," Sam Chaney, the Chief Commercial Officer of NAGA, commented. As he emphasized, NAGA aims to expand its reach internationally.

However, it is essential to look at NAGA's earlier report for Q1 2023. Comparing it with the results of H1 2023 reveals interesting insights. The company's revenues amounted to just EUR 7.9 million in the last three months. This is a fall of more than 30% quarter-on-quarter.

Why Did NAGA Get a New CEO?

Ben Bilski, who established NAGA and lately transitioned from his position as the CEO to the company's CIO, expressed his desire to assist the German fintech firm in "innovating further and shaping it from a product and platform perspective alongside its growth path." Bilski announced his new role last week through a LinkedIn post.

Milonas has now assumed Bilski's role as the CEO. He released a letter to the company's stakeholders yesterday (Monday), highlighting that despite "aggressive competition as well as a tightening regulatory framework," the company has managed to grow its market share.

Adding to that, Milonas mentioned that NAGA in 2023 and the years that follow "will continue to focus on strategic investments to meet the expanding market opportunity."