NetEnt Finishes Strong, 2017 Looking GoodPublished February 20, 2017 by Lee R
The future looks bright for the company’s most important Per.
NetEnt’s year-end 2016 and Q4 reports are in—and full of insight into the direction of development of one of iGaming’s biggest operators.
Q4 2016 revealed robust 23.9% revenue increases to SEK 400 (323) million, with operating profit up to SEK 156 (122) million for an increase of 28.1%. Other encouraging figures include a 37.7% jump in operating margin and a 29.6% jump in profit after tax to SEK 150 (116) million.
NetEnt was a true expansion leader as well, signing 13 new customer agreements while launching 12 new customers’ casinos.
For the year, revenues increased 28.5% to SEK 1,455 (1,132) million; operating profit increased 33.4% to SEK 536 (402) million; Operating margin was up 35.5%, and profit after tax increased 34.9% to SEK 504 (374) million.
Total expansion numbers for the year revealed the signing of 45 new customer agreements and the launch of 34 new customers’ casinos, with 31 more signed customers in the stable to be launched in 2017.
Significant organizational changes took place in NetEnt as well. This includes the signing of a retail deal with Gauselmann for gaming machines market in Italy; a retail agreement signed entered with Paddy Power for gaming machines in Great Britain; new launches of NetEnt in the regulated markets in Bulgaria and Portugal; and a distribution contract for online games in Mexico signed with signed with Codere for online games distribution in Mexico.
President and CEO Per Eriksson couldn’t have been happier, calling 2016 “another exciting year for NetEnt with new record levels in revenues, earnings and cash flow,” and celebrating Great Britain for becoming “our largest geographical market for the first time.”
Performance highlights cited by Per in 2016 included NetEnt’s development of a mobile solution for Live Casino Roulette as well as the game trilogy NetEnt Rocks whose Guns N’ Roses won best game of the year at the EGR Operator Awards in London.
For 2017, Erikson foresees conditions for “continued solid growth, supported by a strong pipeline of new games, UK, mobile, new customers to launch as well as our expansion in North America.”
As an iGaming industry leader, the strategic development of NetEnt stands to influence the behaviour of the market substantially.