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DGAP-News: The NAGA Group AG / Key word(s): Miscellaneous
NAGA publishes preliminary trading update on the first half of 2022
Hamburg, July 22, 2022 - In addition to today's mandatory announcement, The NAGA Group AG (XETRA: N4G, ISIN: DE000A161NR7) operator of the neobroker NAGA, the cryptocurrency platform NAGAX and the neobanking app NAGA Pay, announces a preliminary trading update on the half year 2022.
The Company reports that the overall Group performance across all divisions was strongly impacted primarily by the rapid crypto slump in the second quarter in the trading activities segment. In addition, substantial investments were made in trading activities, marketing and technology in the NAGAX segment, which will pay off later than planned due to the current market situation.
However, the management team remains confident that investments in trading activities as well as products will develop positively. NAGAX is now fully developed with the web platform, mobile apps and the NFT platform and will soon enable cryptocurrency payments in conjunction with NAGA Pay.
"The significant slump in the crypto market came abruptly and especially it has affected smallcap tokens more than still Bitcoin or Ethereum. Nevertheless, we strongly believe that the crypto market will come back in the medium term and for this moment NAGA is very well prepared. We, like many peer group companies, have viewed digital currencies as an absolute growth driver. Fundamentally, the market has improved in cryptocurrencies, however, the current extremely negative overall situation in the global financial market is simply affecting the segment too much," said Benjamin Bilski, founder and CEO of NAGA.
The NAGA management team also announces that it will now focus more on the profitable brokerage business. Particularly positive is the trend of monthly new registrations on the platform, which have increased significantly. For the month of July, it is already foreseeable that the 30,000 customer mark will be significantly exceeded. In addition, the brokerage business has already generated more than EUR 33.5 million in revenue in the first half of 2022, which is significantly higher than the previous year's level of EUR 22.3 million in revenue.
"The fact that we were able to increase brokerage revenue by more than 30% in such difficult market conditions and record the best registration rates since the start of the company makes us feel positive. In fact, we expected significantly more revenues from the crypto segment in the current fiscal year 2022, but will not be able to maintain this. In the second half of the year, the absolute focus will be on the brokerage business. In addition, we will save some costs and thus target a profitable second half-year for the overall group, as we will focus even more on optimizing our marketing campaigns. This focus has already shown first very positive results," concludes Bilski.
Finally, The NAGA Group AG informs that the audited annual financial statements 2021 are expected for mid-August 2022. The delay was mainly due to resource bottlenecks on the audit side as well as complex IFRS issues regarding the accounting of crypto holdings.
NAGA is an innovative fintech company that seamlessly connects personal finance transactions and investments through its social trading platform. The company's proprietary platform offers a range of products from stock trading, investments and cryptocurrencies to a physical VISA card. Additionally, the platform allows for exchanges with other traders, provides relevant information in the feed, and autocopy features for successful members' trades. NAGA is a synergistic total solution that is easily accessible and inclusive. It provides an improved foundation to trade, invest, network, earn and pay. This applies to both fiat and crypto products.
19.07.2022 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The NAGA Group AG
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