The NAGA Group AG (XETRA: N4G) has rebounded to a profit of €4.2m for the first nine months of 2023 as its recent cost-efficiency push laid the foundations for growth.
NAGA Group rebounds to €4.2m profit for first nine months of 2023
The German trading and investing group delivered revenue of €28.4m for the three quarters to 30th September. The ample returns helped NAGA Group back into the black after recording a €4.2m loss for the same period a year ago.
A notable reduction in marketing and operational costs was key to the profit-making in Q1, Q2 and Q3. NAGA Group also took advantage of the growing popularity of social investment and e-payments in new regions. CEO Michael Milonas said the company’s ability to retain customers and lower churn rates improved its operating agility and performance in 2023.
Milonas added:
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.
Marketing and sales saw significant budget reductions this year; just €4m was spent on these activities compared to the €26m during the first nine months of 2022. NAGA Group could still bring in new customers, as evidenced by its impressive €181 average net acquisition cost. Last year, the figure was considerably higher (€1,269).
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NAGA’s strong financial performance was helped by growth in its core KPIs, including a 2,700 increase in active traders (20,400). The total traded volume also jumped to €110bn, and its thriving brokerage business helped it to reach 15% EBITDA for the first nine months of this year.
