The NAGA Group (XETRA: N4G) has made a remarkable turnaround in its financial performance for the first nine months of 2023, eliciting a positive response from shareholders. The company’s stock price soared by nearly 20% during today’s trading session, thanks in part to a 15% increase in the number of active clients.
NAGA Group Achieves 15% EBITDA Growth in Brokerage Business
NAGA has reported a preliminary EBITDA of €4.2 million for the initial three quarters of 2023, a stark contrast to the €4.2 million loss it posted in the same period last year. The brokerage business contributed €28.4 million in revenue, resulting in an impressive EBITDA ratio of approximately 15%.
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One of the key drivers behind NAGA’s recent success has been its diligent cost-cutting efforts. The company has significantly reduced operational and marketing expenses, enabling it to expand into new markets successfully. Furthermore, NAGA has optimized its user acquisition strategy, reducing marketing and sales expenditures from €26 million in 2022 to just €4 million in 2023. Despite this reduction, the number of newly funded accounts only dipped by 19%.
In a parallel development, the number of active accounts surged by over 15%, rising from 17,700 in the first nine months of 2022 to 20,400 for the corresponding period in 2023. This trend aligns with H1 2023 results, where NAGA witnessed a notable 22% increase in its active trader base.
