NAGA Group AG (DE:N4G) moved to positive EBITDA of €2.9m in FY17 on the back of higher brokerage fees and one-off ICO-related advisory fees. Management expects to double trading volumes in 2018. However, the business is still in its early stages, and future profitability will depend on the number and activity of brokerage clients, the success of recently launched products, as well as the sentiment towards cryptocurrencies in the aftermath of the recent market crash.
Positive EBITDA reported in FY17
NAGA reported EBITDA of €2.9m in FY17, following a surge in revenues (excluding activated programming services) to €12.8m (H117: €3.7m). This was driven by the growing customer base and higher trading volumes (€42bn in FY17) in the brokerage business, as well as advisory fees in initial coin offerings (ICOs). Sales growth continued in the first two months of FY18, driving the best monthly results in the company’s short history. The issuance (15 December 2017) of NAGA Coin raised US$50m, exceeding the initial goal of US$30m. The proceeds from the offering are earmarked mainly for marketing, platform growth and tech development projects. The NAGA Coin has already been introduced across the whole NAGA Ecosystem, although for now the adoption level is limited outside NAGA Trader.
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