German fintech and retail brokerage service provider NAGA GROUP AG (XETRA: N4G) has reported higher revenue and EBITDA for the first half of 2023 than initially estimated. According to official data, the company earned €25.2 million, nearly €5 million more than the figures published in July.
NAGA Improves H1 2023 Results, Releases Comprehensive Report
Five months ago, preliminary results indicated an increase in NAGA's EBITDA. However, the complete report, though slightly delayed, revealed that the initial figures were outdated, and the actual results turned out to be even more favorable.
"In the first half of this year, we've seen significant improvements at the EBITDA level, achieving €3.1 million," the company stated in the newsletter sent to its clients. "Additionally, our group revenue reached €25.2 million, marking a milestone in our journey toward sustained profitability."
In July, NAGA reported preliminary revenue of €19.5 million and an EBITDA of €2.3 million. The report published earlier this week also noted that NAGA increased its total assets, which rose from €146.9 million in H2 2022 to €151.2 million in the past half-year.
Although the company hasn't achieved profitability, with a net loss of €1.7 million, this figure is significantly smaller than the net loss of over €19 million in the previous six-month period ending in December 2022. Interestingly, the most recent revenues were lower than those of the previous half-year, which were €35 million.
"The sharp decline in trading revenue was primarily due to the change in marketing strategy compared to the same period of the previous year, which is no longer geared towards increasing revenue but towards profitability," NAGA explained the revenue drop.
Meanwhile, NAGA published a preliminary report in October for the first three quarters of 2023, showing a profit of €4.2 million. In November, a delayed report for 2022 was released, showing a net loss of €37 million.
Fewer Active Clients than Initially Reported
A negative shift from the preliminary to the final report concerns the number of active clients. Initially, NAGA suggested an increase of 22%, but the latest report indicates a rise of only 9.4%. As of 30 June 2023, the number of active users increased 1,802, reaching 21,035. Regarding client assets, their value rose from €34 million to €36 million.
"For the 2023 financial year, NAGA is sticking to the forecast made in the management report for the 2022 financial year, according to which the Executive Board expects significantly lower sales revenue compared to the previous year and a sharp rise in positive EBITDA," the company concluded.
Although the initial report in July caused a strong reaction in the German stock market and a rise of 8% in N4G shares, the latest report passed without much market impact. On Wednesday, NAGA's shares were trading at €1.028.
Meanwhile, the company announced that its president, Blen Blinski, has resigned as the CEO to assume the role of Chief Information Officer where he will “take over all our tech-related and innovation matters.” Michael Milonas has become the new CEO.
