NAGA sees 32% Revenue decline in Q2-2023 to €7.9 million

Social trading focused online broker NAGA Group (ETR:N4G) has announced some preliminary financial and operating figures for the just-closed first half of 2023, providing some more insight into why NAGA recently decided to reassign CEO Ben Bilski to the role of CIO, in favor of new CEO Michael Milonas.

NAGA reported that it saw Revenue of €19.5 million, and preliminary EBITDA of €2.3 million for the first six months of 2023. The company said that this marks a significant improvement in performance, with a significant reduction in costs compared to HY1 2022.

However digging a little deeper it appears as if Revenues at NAGA continue to decline. The company had reported in April that NAGA brought in Revenues of €11.6 million in Q1-2023, meaning now that in Q2 Revenues at NAGA declined to just €7.9 million, a 32% quarter-to-quarter decline.

Nevertheless NAGA stated that the company has achieved “impressive growth”, with 4.9 million trades and a trading volume of €69 billion in the first semester of 2023. NAGA had previously reported that it saw total trading volumes of €37 billion in Q1, such that trading volumes in Q2 declined to €32 billion at NAGA, or just under USD $12 billion monthly.

NAGA did say that the number of active traders has increased by 22% compared to the same period last year, and assets under custody have grown by 48%.

Looking ahead, NAGA said that it plans to expand internationally. Sam Chaney, Chief Commercial Officer of NAGA, stated,

“We are thrilled with our performance and future growth prospects. Our focus on cost reduction and improved core KPIs has positioned us well for continued success in the global market.”

In HY1 2023, although NAGA significantly decreased its direct marketing expenditure, the impact on the number of new clients depositing for the first time with NAGA was much smaller, whilst the average deposit size from these new clients has nearly doubled compared to 2022, indicating an increased attraction of better-quality depositors.

“2023 will be a steppingstone into the future for NAGA. We are extremely satisfied with the turnaround that occurred during the first half year of 2023 and this is confirmed by the preliminary results of the first six months of 2023. Our cost base has been significantly optimized leading to a positive EBITDA compared to last year. Both the teams and management, have and still are collectively striving with one common goal and that is to make NAGA profitable. Our costs are very much under control, and we are now running a much leaner operation. We have reassessed our strategy and have now shifted our attention to global growth, new acquisitions, and expansion of our license base which will make NAGA a strong brand and give a solid footprint in new markets. We are very proud of this joint effort and will overcome any obstacle that may head our way. Challenges will only make us stronger,” commented the CFO of NAGA, Christos Charalambous.

Hamburg based NAGA said it plans to expand its client footprint globally.

“Expanding our business globally is not just a goal; it’s a mindset. We believe that innovation knows no boundaries, and by embracing diverse markets, cultures, and perspectives, we can create a truly global ecosystem for our customers. Together, we will forge new alliances, seize exciting opportunities, and unlock the immense potential of the digital economy. Let’s redefine the way the world trades and invests, one step at a time,” further commented the CCO of NAGA.

Yesterday we noted that NAGA’s newly appointed Group CEO Michael Milonas explained his vision for the company both in terms of brand positioning and growth as well as new strategic direction in his first letter addressed to the Group’s investors.