NAGA Group AG Reports EUR 37 Million Loss for 2022

The NAGA Group AG, a prominent player in the retail FX/CFDs trading and crypto industry, recently released its consolidated financial reports for the year 2022, sharing a significant annual loss of more than EUR 37 million. This loss marked a substantial deepening from the previous year’s loss of EUR 10 million.

The earnings per share (EPS) for the group stood at a negative EUR 0.69 for 2022, down from the previous year’s negative EUR 0.23. NAGA Group AG has gained recognition for its social trading services in the FX and CFDs market, in addition to its brokerage services. The company has diversified its portfolio by venturing into areas such as payments and cryptocurrencies. In the previous year, NAGA obtained a license from the Seychelles regulator, enabling it to expand its operations internationally.

Revenue Growth: NAGA reported a total revenue of EUR 57.5 million in 2022, representing a 9 percent year-on-year increase from EUR 52.8 million in the previous year. Notably, 90 percent of the trading revenue came from European customers, a significant shift from the previous year’s more balanced figure of 54 percent. A substantial 43 percent of the EU revenue was exclusively generated in Germany.

NAGA Group AG Reports

The company managed to reduce its marketing and advertising expenditure to EUR 28.3 million, down from EUR 30.9 million, showcasing cost-efficiency improvements.

 NAGA Group’s direct expenses related to trading revenues rose to EUR 14.3 million, resulting in a gross profit of EUR 48.4 million, surpassing the previous year’s EUR 45.7 million.Despite the losses in 2022, the company turned a positive EBITDA of €4.2 million in the first nine months of 2023.

NAGA incurred a write-off of over EUR 15.3 million for the “amortization of non-current crypto assets,” which, along with depreciation,” lowered the EBIT to EUR 36.8 million. This marked a substantial increase from the 2021 EBIT of EUR 9.5 million.2023 Focus on Stability: Looking ahead, the company’s Executive Board is planning for declining Group sales in the fiscal year 2023, with a shift in focus towards generating stable and reliable profits. The company aims to achieve this through significant cost reductions and improved efficiency in marketing and sales.

NAGA Group AG raised $8.2 million in convertible bonds earlier in the year, repaying $6 million last month. The company also secured a loan from an undisclosed institutional investor and renegotiated to pay the remaining amount of $2.7 million with interest on January 30, 2024.

Despite the challenges faced in 2022, NAGA Group AG is strategizing for a more stable and profitable 2023, with a focus on cost efficiency and improved financial performance.

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