NAGA Group to return to the UK after reporting a 51% revenue increase in H1 2022
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Recently, NAGA Group published its H1 financial report for the period from January 1st, 2022 to June 30th, 2022. The report appears to be quite positive for the company, which managed to earn over 35 million EUR. This represents a significant increase from 23.2 million EUR that the company made in 2021, during the same period.
This represents a YoY increase of around 51%. With this in mind, the company felt encouraged to continue expanding in Europe, including its new plans to re-enter the UK market.
NAGA’s H1 2022 report revealed its performance this year
NAGA Group’s report has revealed several other interesting pieces of information, such as the fact that it generated a consolidated EBITDA of negative 2.7 million EUR during this period. This is also a major increase compared to a negative figure of 0.2 million seen last year. The company noted that both EBIT and net profit were quite strongly affected by the depreciations.
The biggest impact came because of the strong devaluation of crypto prices, which lost the majority of their value throughout the year. In fact, the company said that Q1 of this year brought 18 million EUR in revenue. Then, in the second quarter, it generated another 17 million EUR. The company managed to generate over 24 million euros in H1 2022 from its Europe businesses alone.
The majority of the earnings came from Germany. Despite this, the company admitted that its 2022 was challenging. 2021 was a much different year, extremely bullish, with a promising market. However, due to the crypto price crash, the war in Ukraine, regulatory pressures, rising inflation, the collapse of Terra blockchain, Celsius, FTX, and similar incidents, the market — and the firm, to an extent — felt their fair share of hits.
NAGA worked on reducing the costs in 2022
Furthermore, NAGA underlined its efforts to make cost reductions. To achieve this, it reduced marketing costs for all of its platforms, including NAGAX, NAGA Pay, and NAGA Trader. The company was also forced to slash its workforce, reducing it by 20%. Not only that, but it also reduced R&D costs for NAGA Pay and NAGAX, alongside the operating costs for the firms.
NAGA’s H1 report says that the company reduced the cost base from 20 million EUR in Q1 of this year to 12 million EUR in Q4. Despite the cost reduction, however, the company saw improvements when it comes to performance of other KPIs.
The company saw the average number of first-time depositors per month go up from 1,235 at the start of the year to 2,114, in Q4. Meanwhile, the number of monthly transactions, on average, went from 664k in Q1 to 771k in Q4. The number of traders per month also went up from 27k to 28k.
