The Naga Group AG

Latest Results (14.08.2024):

Revenue Decline

The Naga Group AG reported a significant decline in revenue for the fiscal year 2023. The total revenue generated was EUR 39.7 million, compared to EUR 57.6 million in the previous year. This decrease was primarily due to reduced marketing and advertising efforts in a challenging market environment for online brokers and the cessation of NAGA Coin trading.

EBITDA Improvement

Despite the revenue decline, The Naga Group AG successfully improved its EBITDA for the fiscal year 2023. The EBITDA increased to EUR 8.4 million, a substantial improvement from the previous year's negative EBITDA of EUR -13.7 million. This improvement was achieved through cost-cutting measures across various expense categories.

Cost Reduction

The Naga Group AG implemented significant cost reduction strategies in 2023, leading to a decrease in marketing and advertising expenses from EUR 28.3 million in 2022 to EUR 4.6 million in 2023. Additionally, personnel expenses were reduced from EUR 10.7 million to EUR 6.5 million, contributing to the overall improvement in EBITDA.

Net Loss

Despite the improvements in EBITDA, The Naga Group AG reported a net loss of EUR -61.0 million for the fiscal year 2023, compared to a net loss of EUR -44.1 million in the previous year. This was largely due to high non-cash and extraordinary write-downs, including a significant impairment on the goodwill of the brokerage business.

Strategic Merger

In 2023, The Naga Group AG entered into a detailed letter of intent for a strategic merger with Key Way Group Ltd., which operates under the brand CAPEX.com. This merger, approved by shareholders in April 2024, is expected to enhance NAGA's market presence and drive growth, particularly in emerging markets outside the EU.