Nexteq, a U.K. gaming-technology company, has announced that it anticipates a boost in revenue for the first half of the year. This, combined with improved first-half operating margins, is expected to result in a full-year adjusted pretax profit that aligns with market expectations.
Strong Performance in First Half
Nexteq predicts that its revenue for the first half will reach $56.3 million, representing a growth from $53.3 million in the previous year. The company attributes this positive trend to the improving gross margins over the first half, which can be attributed to a greater proportion of Densitron sales and a reduction in global supply chain challenges. In addition, effective management of operating expenses has contributed to a significantly improved operating margin compared to the first half of 2022.
Promising Outlook for 2023
According to current market forecasts, Nexteq projects revenue in the range of $128.0 million to $129.1 million for 2023, with an adjusted pretax profit of $12.4 million. These estimates indicate a growth from last year’s revenue of $119.9 million and an adjusted pretax profit of $10.2 million.
Overcoming Market Challenges
Nexteq’s Chief Executive, Jon Jayal, has commended the company for its ability to overcome challenges caused by shortages in the electronic component market. The team has dedicated significant effort to mitigating the effects on customers, which has solidified Nexteq’s trading performance for 2023.