NAGA reports EUR 1.6 million in revenues in Q1 2023

NAGA Group, a fintech company based in Germany, has reported a 36% year-over-year drop in group revenues in Q1 2023. The company reported EUR 1.6 million worth of revenues during the first three months of the year, a decline from the EUR 18 million reported in Q1 2022.

NAGA reports a 36% drop in revenues in Q1 2023

NAGA reported EUR 1.7 million EBITDA in the first three months of 2023, a 200% drop from the EUR 5 million reported in Q1 2022. During the first quarter of 2022, NAGA reported notable growth in revenue and EBITDA.

February was a good month for NAGA as the company reported a profit of around EUR1.5 million year-to-date. The group further said that it generated revenues of nearly EUR 6 million alongside expenses, which reached around EUR 4.5 million.

NAGA Group operates the regulated neo-brokerage platform known as NAGA and a neo-banking app known as NAGA Pay. The company is also behind a cryptocurrency platform known as NAGAX.

Despite the notable drop in revenue and EBITDA, active traders on the platform increased by 30% from the 16,300 reported in Q1 2022 to 21,250 reported in Q1 2023. The company also executed 2.9 million trades in the first quarter of this year, saying that these trades were worth EUR 37 billion.

The update issued by NAGA also said that the company’s assets under custody had increased to EUR 35 million, a 45% increase from the EUR 24 million reported during the first half of 2022.

In the recent update, NAGA said that the monthly cost dropped to EUR 3.3 million, a 40% decline from the average of EUR 5.5 million reported during the same period in 2022. Additionally, the group anticipates that there will be another decline of around 20% in the second quarter of 2023 as it maintains the growth trajectory.

NAGA marketing expenses dropped by 70% during the first quarter of 2023, declining from the EUR 11.5 million reported in Q1 2022. The company also added that it had gained 11% new users by the end of Q1 2023.

NAGA is strengthening its capital base

The founder and CEO of NAGA Group, Benjamin Bliski, commented on the financial results saying that the company was pleased with what was reported during the first quarter. The growth was commendable, given the increased user activity and the growing number of new acquisitions.

Bliski also said that the costs charged by the company were under control, adding that the firm was currently focused on expanding its business operations. The executive further said the firm was creating a foundation to boost the business’s profitability.

“However, given the fact that we incurred significant losses last year and despite the current merger discussions, we are keeping our eyes open for opportunities to strengthen our capital base to ensure we can execute our plans,” the executive said.