NAGA Group revenues hits €6 million in 2023, expenses down 65%
NAGA Group, a provider of brokerage services, cryptocurrency platform NAGAX and neo-banking app NAGA Pay, has published a year-to-date trading update.
Looking at the figures, the group’s brokerage business revenue was reported at €6 million, whilst expenses were kept at around €4.5 million. Following a restructuring in the summer, NAGA decreased its cost base by nearly two thirds when compared with the same period in the year earlier whilst keeping new customer growth 15 % above 2022 levels.
In its latest annual report, the publicly traded fintech attributed the bulk of its solid performance to the copy-trading activity. In particular, the trades copied via its Auto Copy tool represent 55 % of its overall trading volume. Additionally, customer deposits in 2023 are up by 50% compared to the same period in 2022 and average deposits per new client increased 75% from a year earlier.
“We are pleased to see that our restructuring efforts are materializing. We kept new user growth up whilst cutting overall operating expenses significantly. Our acquisition cost per user has improved by over 75 % and the value per user went up by another 13 % year over year. We keep improving the current operation and preparing ourselves for more global business from the emerging markets, which we see as a significant profit driver in 2023“, says Benjamin Bilski, CEO and founder of NAGA Group AG.
NAGA Group revealed last month that it’s discussing a possible merger with an international brokerage firm. The announcement suggests the two companies are hopeful of striking a deal by the end of the year, pending regulatory approval. Naga said it will maintain its current listing status following the consummation of any such transaction.
“The Naga Group AG is in discussions to pursue a potential strategic transaction with a multi-country brokerage firm, potentially in the form of a merger of the two companies. The transaction is subject to due diligence and is expected to be finalised subject to customary conditions precedent and regulatory approvals, and to close in Q4 2023,” the statement reads.
NAGA Group reported strong revenues, significant user growth in 2022, but it deepened its operational loss due to increased marketing and advertising expenses and the devaluation of crypto assets.