NetEnt is Firing on All Cylinders, Interim Report ShowsPublished October 28, 2016 by Lee R
CEO confirms the viability of the NetEnt model in today’s iGaming market.
NetEnt’s growth can scarcely be stopped.
The Swedish online gambling technology supplier giant reports a one-fifth jump in profits for Q3, a figure which could have been higher if not for some residual weakness in the UK pound.
Last Friday’s figures revealed that NetEnt’s revenue for the quarter ending September 30 jumped 27.7% to SEK 357m (US $40.1m). The weakness of the British pound after Brexit accounted for an estimated 3% drop off from full potential gains.
Gains included a Q3 operating profit increase of 23% to SEK 129m and profit after tax gaining 22.2% to SEK 119m. Further impressive figures were achieved in NetEnt’s operating margin, at 36.2%; and mobile revenue’s whopping 83% year-on-year, which accounted for 40% of all Q3 revenue.
Cumulative gains for the first nine months of 2016 were up almost a third for NetEnt as well, to SEK 1.05b, with operating profit up almost 36% to SEK 380m and profits up 37.2% to SEK 354.5m. Operating margin remained robust at 36%.
Expansion in Q3
Q3 was a great time of expansion as well, as NetEnt unveiled its new live casino for mobile; signed no less than 11 new customer agreements: and launched online casinos for eight new customers, including Rank Group and operators in NetEnt’s new market Romania.
Canadian Issue Addressed
NetEnt is also de-emphasizing its Canadian presence, where the grey market has turned into something of an albatross for operators who sought to expand there. In kind, NetEnt licensees have begun withdrawing regional access to NetEnt products, with restrictions to all Canadian licensees under effect for this month.
CEO Discusses Expansion
NetEnt President and CEO Per Eriksson voiced his company’s ambition to achieve continued strong sales growth for the remainder of 2016.
He also underscored his company’s commitment to sustainability and growth on regulated markets, as well as corporate ethics in “promoting responsible gaming” as “fundamental to NetEnt and a condition for the licenses that we hold.”
Positive Regulation Movement
Eriksson also expressed his pleasure in seeing the growing amount of countries acquiescing to regulate online gaming, which provides more sustainability for the industry overall and gives NetEnt no small amount of competitive edge, confirming NetEnt’s organisational value and viability.
Look for NetEnt expansion to continue, and be characterised by increases in the number of employees, further platform development, and integration of a larger and increasingly diverse customer base.