NuWays AG Upholds 'Buy' Recommendation on The Naga Group AG Amid Merger Challenges

The Naga Group AG revealed weaker-than-expected unaudited figures for the first half of 2024. The recent merger with CAPEX impacted sales, which fell to €31.6m, below last year's pro forma figures of €36.0m. The average revenue per trade decreased to €4.0. Despite this, trading activity saw a rise to 7.9 million transactions.

EBITDA improved year-on-year, reaching €2.6m compared to €1.5m previously, mainly due to cost reductions. However, it failed to meet expectations owing to higher marketing expenses and reduced other operating income. EBT was negatively affected by €5.5m in depreciation and amortization and €1.2m in financing costs, leading to a loss of €4.1m.

Despite initial setbacks, the company anticipates growth. High marketing expenditures, the launch of the NAGA SuperApp in the Telegram ecosystem, and a partnership with Borussia Dortmund are expected to drive significant improvement in the second half of the year.