THE NAGA GROUP AG: FY24 Review and Future Prospects

THE NAGA GROUP AG recently announced its preliminary financial results for FY24. The company's sales decrease to €62.3 million, a 20% drop from the previous year, primarily due to the closure of loss-making subsegments. Trading activity also declined, with only 7.6 million trades closed, compared to 11.5 million in FY23. However, the volume per closed trade increased, showing some signs of recovery.

EBITDA reached €8.5 million, a decrease of 3.5% year-on-year, attributed to synergy effects from the merger and improved efficiency. Despite lower sales, customer deposits surpassed $100 million, indicating potential future sales growth.

Looking ahead, the company has initiated partnerships with BVB and Mike Tyson, aiming to boost growth from Q1 of FY25. Management forecasts a 19% increase in topline growth for FY25, with expectations for EBITDA to rise as efficiencies improve. A conservative yet ambitious approach characterizes the outlook, with a revised target price of €1.20 endorsed by NuWays AG.