NAGA’s Crypto Revenue Falls Short of Expectations, Brokerage Revenue Jumps 30% in H1

NAGA Group has released a preliminary trading update for the half year of 2022. For the period, the financial services provider posted a brokerage revenue of more than €33.5 million, compared with €22.3 million in the last year.

However, the company reported that the overall group performance across all divisions was strongly impacted primarily by the rapid crypto slump in the second quarter in the trading activities segment. In addition, substantial 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.

Therefore, the company announced that it will now focus more on the profitable brokerage business. For the month of July, it is already foreseeable that the 30,000 customer mark will be significantly exceeded.

Benjamin Bilski, founder and CEO of NAGA commented:"The significant slump in the crypto market came abruptly and especially it has affected smallcap tokens more than still Bitcoin or Ethereum. Nevertheless, we strongly believe that the crypto market will come back in the medium term and for this moment NAGA is very well prepared. We, like many peer group companies, have viewed digital currencies as an absolute growth driver. Fundamentally, the market has improved in cryptocurrencies, however, the current extremely negative overall situation in the global financial market is simply affecting the segment too much."

"The fact that we were able to increase brokerage revenue by more than 30% in such difficult market conditions and record the best registration rates since the start of the company makes us feel positive. In fact, we expected significantly more revenues from the crypto segment in the current fiscal year 2022, but will not be able to maintain this. 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 target a profitable second half-year for the overall group, as we will focus even more on optimizing our marketing campaigns. This focus has already shown first very positive results,"concluded Bilski.