Revenues for NAGA Group reach €6 million in 2023, while costs decline by 65%

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A year-to-date trade update has been released by NAGA Group, a supplier of brokerage services, the cryptocurrency platform NAGAX, and the neo-banking application NAGA Pay.

According to the numbers, the group’s brokerage sector generated €6 million in revenue while maintaining expenses at roughly €4.5 million. After reorganising in the summer, NAGA cut its cost base in half compared to the same period the previous year while maintaining new client growth at 15% above 2022 levels.

The publicly traded fintech company attributed the majority of its strong profitability to copy-trading activities in its most recent annual report. In particular, 55% of its total trading volume is made up of deals copied using its Auto Copy function. In addition, customer deposits in 2023 are up 50% from the same time in 2022, and the average deposit for a new client is up 75% from the previous year.

“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.

The NAGA Group disclosed last month that it is in talks with a global brokerage firm about a potential merger. According to the release, the two businesses anticipate closing a merger before the end of the year, subject to regulatory approval. Following the completion of any such acquisition, Naga stated that it will continue to hold its present listing status.

The Naga Group AG is in talks with a multi-country brokerage firm about pursuing a potential strategic transaction, which might take the form of a merger between the two businesses. According to the statement, the transaction is still undergoing due diligence and is anticipated to close in Q4 2023, pending usual antecedent conditions and regulatory clearances.

In 2022, NAGA Group reported high sales and tremendous user growth, but it also saw a sharper operational loss as a result of rising marketing and advertising costs and the falling value of crypto assets. You can read more about them in our NAGA Review.

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