With Q2 now in the books, President and CEO Per Eriksson is roundly encouraged by NetEnt´s growth through the first full half year.
More Growth on Tap
Eriksson indicated that the company remains on track for further growth in the second half of this year, looking to add to the year-on-year increases in revenue and operating profit it showed through June 30th.
H1 Revenue Growth
H1 revenues for the year totaled SEK697.4 million (€73.7 million/$82.1 million), jumping 31.7% on from last year´s total of SEK529.5 million.
Operating profits also jumped, showing increases of 43.6% year-on-year to SEK250.5 million. Operating margin jumped to 35.9%.
Profit after tax totals climbed 46.3% to SEK235.2 million, with earnings per share post dilution increasing from SEK0.67 to SEK0.98.
NetEnt´s momentum actually looks to be picking up now, with the second quarter largely responsible for the growth, most of all through the 29.8% year-on-year increase recorded by NetEnt of SEK352.1 million in Q2, with operating profit up 32.1% to SEK122.4 million, profit after tax up to SEK113.5 million, and earnings per share at SEK0.47.
Strong Demand Apparent
Eriksson emphasized that the increases in revenues 30% and operating profit 32% for Q2 reflected “strong demand for our products and strong growth”
The Q2 growth was further reflected in the fact that “the number of gaming transactions in our systems amounted to a full 8.8 billion in the second quarter, for a year on year jump of 36% compared to last year, and an operating margin of 34.8% improvement in the second quarter.
New Agreement Drivers
Q2 growth was driven by 12 new customer agreements, including with a supplier agreement with UK gaming operator Rank Group to deliver online casino games to Rank casino brands Grosvenor and Mecca.
Hitting US Soil
Important foundational developments taking place in H1 included the company providing online and mobile casino games to Amaya Gaming’s PokerStars brand serving New Jersey, in a conditioning process which not only set the stage for Q2 growth but further expansion in the US when other states regulate.
So far, Erikson´s company looks to be adapting to the diverse iGaming market effectively.