NAGA Group AG (XETRA: N4G, ISIN: DE000A161NR7), operator of the neo-broker NAGA, the cryptocurrency platform NAGAX and the neo-banking app NAGA Pay, announces a preliminary trading update for the first half of 2022 in addition to today’s mandatory notification.
The company reports that the group’s overall performance across all companies was severely affected by the rapid cryptocurrency dip in Q2 trading activity. In addition, significant investments were made in trading activities, marketing and technology in the NAGAX segment, which will pay off later than planned due to the current market situation.
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The management team is confident
However, the management team remains convinced that investments in trading activities and products will develop positively. NAGAX is now fully developed with the web platform, mobile apps and the NFT platform and will soon enable cryptocurrency payments in connection with NAGA Pay.
‘The marked downturn in the crypto market came abruptly and hit small-cap tokens harder than Bitcoin or Ethereum. However, we are confident that the crypto market will return in the medium term and NAGA is very well prepared for this moment. Like many other companies in the peer group, we have seen digital currencies as the absolute driver of growth. Basically, the market for cryptocurrencies has improved, but the current extremely negative overall situation in the global financial market is simply affecting the segment too much ‘, says Benjamin Bilski, founder and CEO of NAGA.
NAGA’s management team announces that it will focus more on the profitable brokerage business
The development of monthly new registrations on the platform, which has increased significantly, is particularly positive. For the month of July, it can already be predicted that the 30,000 customers will be clearly exceeded. In addition, the brokerage business has already generated more than EUR 33.5 million in sales in the first half of 2022, which is significantly higher than the previous year’s level of EUR 22.3 million.
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Broker turnover makes the management team positive
‘The fact that we were able to increase brokerage sales by more than 30% in such a difficult market environment and record the best registration numbers in the company’s history makes us feel positive. In fact, we had expected significantly more sales from the crypto segment for the current financial year 2022, but we will not be able to maintain that. In the second half of the year, the absolute focus will be on the brokerage business. In addition, we will save some costs and thus aim for a profitable second half year for the entire group, as we will focus even more on optimizing our marketing campaigns. This focus has already shown very positive results’, Bilski concluded.
Finally, NAGA Group AG announces that the audited financial statements for 2021 are expected in mid-August 2022. The delay is primarily due to resource constraints in the audit as well as complex IFRS problems in the accounting of cryptocurrencies.
NAGA is an innovative fintech company that seamlessly connects private financial transactions and investments through its social trading platform. The proprietary platform offers a range of products from stock trading to investment and cryptocurrencies to a physical VISA card. In addition, the platform enables exchanges with other traders, provides relevant information in the feed and offers autocopy features for members’ successful trades. NAGA is a total synergistic solution that is easily accessible and comprehensive. It provides an improved basis for trading, investing, connecting, earning and paying. This applies to both fiat and crypto products.
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