NAGA Group released its preliminary unaudited results for the first quarter of 2023 on Tuesday. In the first three months of the year, the German-based fintech firm experienced a 36%YoY drop in group revenue.
The numbers showed that revenue generated during the quarter was EUR 11.6 million, down from the EUR 18 million registered during the first quarter of last year. NAGA’s earnings before interest, taxes, depreciation and amortization (EBITDA) plummeted by almost 200% from EUR 5 million in Q1 2022 to EUR 1.7 million in March.
Despite the decline in revenue and EBITDA, the number of active traders on NAGA increased by 30% from 16,300 in Q1 2022 to 21,250 in the previous month. Additionally, NAGA executed 2.9 million trades worth EUR 37 billion during Q1 2023.
NAGA stated in their update that the assets under custody have increased to EUR 35 million, representing a growth of 45% compared to the previous reported HY1 2022 figure of EUR 24 million.
Additionally, the company said it lowered its monthly cost to an average of EUR 3.3 million during Q1 2023, a 40% decrease compared to the EUR 5.5 million average during the same period last year. The Group said it expects to further reduce its costs by about 20% in the next quarter, while also keeping its growth trajectory.
Additionally, the company decreased its marketing spending by 70%, from EUR 11.5 million in Q1 2022 to EUR 3.5 million last month, yet still acquired 11% more new users at the end of March 2023, thanks to a restructured marketing strategy and AI-driven marketing intelligence.
Benjamin Bilski, the Founder and CEO of NAGA Group, said:
We are satisfied with how we performed over the last months especially looking at growing user activity and well improved user acquisition metrics. The costs are under control and we have a good grip on the business expansion. We are creating a foundation to run this business profitably and the past month’s trend proves that. However, given the fact that we incurred significant losses last year and despite the current merger discussions, we are keeping our eyes open for opportunities to strengthen our capital base to ensure we can execute our plans.
