NAGA Group turns profit in 2023 as revenue grows to €28.4 million
NAGA Group, a provider of brokerage services, cryptocurrency platform NAGAX and neo-banking app NAGA Pay, announced the financial results for the first nine months of 2023.
The group’s brokerage business revenue was reported at €28.4 million, delivering an EBITDA ratio of around 15% for the first three quarters of 2023. In terms of its bottom-line metrics, the year-to-date EBITDA improved to €4.2 million compared to a net loss of -€4.2 million in 2022.
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 above 2022 levels.
The report further states that the broker optimized its user acquisition strategy, drastically reducing its marketing and sales spending. In the first nine months of 2022, the company spent approximately EUR 26 million, while in 2023, this figure was trimmed to just EUR 4 million for the same period. Notably, the average net acquisition cost per new account dropped from EUR 1,269 in 2022 to EUR 181 in 2023. Despite the reduced budget, NAGA Group acquired around 10,000 new funded accounts in the first three quarters of 2023, only 19% less than the previous year.
Other business highlights show that NAGA Group observed growth in all core Key Performance Indicators (KPIs) when comparing the first three quarters of 2023 to the same period in 2022.
In its latest report, the publicly traded fintech attributed the bulk of its solid performance to the strong trading activity. In particular, active accounts increased to 20.4K traders in 2023, traded volume rose to EUR 110 billion, and client equity reached EUR 34 million as of September 30, 2023. New equity contributions from new accounts also saw strong growth, translating to EUR 913 per new account, and the average monthly churn rate improved from 8.4% to 5.3%.
NAGA’s neo-banking app experienced consistent double-digit growth throughout 2023. NAGA Pay, which offers investment in stocks and crypto via its mobile app, contributed EUR 0.25 million to the group’s revenue in 2023 and aims to break even as a standalone project in Q4.
“We have spent and hired in recent years according to established, capital intensive market standards, as has happened with many industry peers and tech companies. Our focus this year has been to reduce spending and increase efficiency. Spending 80% less and seeing growth across all our core KPIs makes us confident for the upcoming months,” said CEO Michael Milonas.
