As Per Per: NetEnt Deals Promise Greater Gain on the Horizon in 2018
Published February 20, 2018 by Lee R
Lukewarm Q4 gains for NetEnt only appear to be adaptations as new deals in Q4 set the foundation for more growth in 2018.
Despite some lukewarm figures amongst strong performance indicators, NetEnt President and CEO Per Eriksson spoke glowingly after releasing the Q4 and year-end reports for 2017.
Rich Strategy Behind Data
Per praised the profitable growth, while looking forward to increasing commercial focus and optimizing the organization to ensure revenues grow faster than costs. He further professed to looking forward to the new year with “more game releases and product news than ever for NetEnt.”
The Key Q4 Gain
As for the most telling data from Q4 results, the major gain for Q4 was in total revenue, which increased by 4.7% to SEK 419 million (from 400).
Adjusting Figures
A dip of note was in the area of operating profit, which dropped to SEK 150 million, decreasing 3.9% from 156 million; at the same time, operating margin dropped from 39 to 35.8 year-on-year.
Slight Increases Will Grow
At the same time, profit after tax reached SEK 152 million for an increase of 1.5% from 150 year-on-year. The totals for earning per share before and after dilution were SEK 0.63 (0.62).
Many New Deals
These figures should all rebound in light of the 8 new customer agreements signed and 11 new customers’ casinos launched in Q4.
Full Year Figures
As for the full year, NetEnt revenues increased by 11.7% to SEK 1,625 million (from 1,455, while operating profit jumped 9.5% to SEK 587 million (from 536) million, and dropped ever so slightly from operating margin was 36.8 to 36.1).
Profit after tax for the year increased 9.5% to SEK 552 (504) million, while earnings per share before and after dilution topped out at SEK 2.30 , up from 2.10 in 2016.
Total New Agreements Signed in 2017
For the year, 37 new customer agreements were signed and 35 new customer casinos were launched.
Significant adaptations in performance on paper are visible as a result of bold new agreements signed in Q4 by NetEnt that bode well for future growth. These organizational enhancements include a new customer agreement signed with Caliente in Mexico in Q4, along with the launch of a new digital marketing service with Ve Global.
New Releases in 2017
Q4 also saw the release of new big name games Planet of the Apes along with Finn and the Swirly Spin, along with a mobile version of Live Casino Black Jack.
Outlook
Per’s enthusiasm seems logical in light of the many deals in Q4 and 2017 which have positioned NetEnt for growth contribution for a diverse array of iGaming sectors and verticals.
