NAGA's Earnings Exceed Initial Estimates in H1 2023, Final Report Indicates

<p> German
fintech and retail brokerage service provider NAGA GROUP AG (XETRA: <a href="https://www.financemagnates.com/tag/naga/" target="_blank" rel="follow">N4G</a>) 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.</p><p>NAGA Improves H1 2023
Results, Releases Comprehensive Report</p><p>Five months
ago, preliminary results <a href="https://www.financemagnates.com/forex/naga-reports-22-jump-in-active-traders-in-h1-2023/" target="_blank" rel="follow">indicated an increase in NAGA's EBITDA</a>. The complete
report, slightly delayed, revealed that the initial figures were outdated, with
actual results being even better. </p><p>"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."</p><p>In July,
NAGA reported preliminary revenue of €19.5 million and an EBITDA of €2.3
million. Delving into the details of the report published earlier this week,
it's also noted that NAGA increased its total assets from €146.9 million in H2
2022 to €151.2 million in the past half-year.</p><p>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.</p><p>"The
sharp decline in trading revenue was primarily due to the change in <a href="https://www.financemagnates.com/terms/m/marketing/">marketing</a>
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.</p><p>Meanwhile, NAGA published a preliminary report in October for the first three quarters of 2023, <a href="https://www.financemagnates.com/forex/naga-transforms-42m-loss-into-42m-profit-as-first-time-deposits-soar-by-100/" target="_blank" rel="follow">showing a profit of €4.2 million</a>. In November, a delayed report <a href="https://www.financemagnates.com/forex/nagas-eu-customers-brought-90-fy22-revenue-losses-mounted-to-37m/" target="_blank" rel="follow">for 2022 was released</a>, showing a net loss of €37 million.</p><p>Fewer Active Clients than
Initially Reported</p><p>A negative
shift from the preliminary to the final report concerns the number of active
clients. Initially, NAGA suggested a 22% increase, but the latest report
indicates a rise of only 9.4%. As of 30 June 2023, the number of active users
increased by 1,802, reaching 21,035. Regarding client assets, their value rose
from €34 million to €36 million.</p><p>"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.</p><p>Although
the initial report in July caused a strong reaction in the German stock market
and an 8% rise in N4G shares, the latest report passed without much market
impact. On Wednesday, NAGA's shares were trading at €1.028. </p><p>Meanwhile,
the company announced that its president, <a href="https://www.financemagnates.com/forex/why-i-gave-up-my-ceo-role-to-become-cio-naga-founder-ben-bilski/" target="_blank" rel="follow">Blen Blinski, resigned as the CEO</a> to
become Chief Information Officer “to take over all our tech-related and
innovation matters.” <a href="https://www.financemagnates.com/forex/naga-successfully-secures-82m-funding-and-promotes-new-ceo/" target="_blank" rel="follow">Michael Milonas became</a> the new CEO.</p>

This article was written by Damian Chmiel at www.financemagnates.com.