NetEnt Moves Forward According to Strategy, to the Delight of ShareholdersPublished November 8, 2018 by Lee R
NetEnt is staying faithful to expansion strategy, and interim and Q3 figures reflect the benefits.
NetEnt Group CEO Therese Hillman is bullish on Q3 2018.
Key New Release
Therese identified the success of the new release of Jumanji as a key driver of Q3 growth.
She identified expansion strategy as “efforts to lower overhead costs and optimize the organization for commercial drive and increased pace of output.”
Areas of increased focus include the further leveraging of net cash position for financial flexibility to sustain solid cash returns to shareholders.
As far as Q3 was concerned, revenues totalled SEK 449 (405) million, with EBITDA of SEK 227 (195) million for a margin of 50.6 (48.1)%.
NetEnt also showed an operating profit (EBIT) of SEK 172 (155) million for a margin of 38.3 (38.3)%; profit after tax of SEK 155 (142) million and earnings per share of SEK 0.65 (0.59) before and after dilution
As for growth, 9 (8) new customer agreements were signed with 14 (10) new customers’ casinos launched.
Key Interim Figures
As for the interim nine months through September 2018, revenues reached SEK 1,317 (1,211) million, with EBITDA of SEK 612 (545) million for a margin of 46.5 (45.0)%.
Operating profit (EBIT) of SEK 455 (429) million yielded a margin of 34.6 (35.4)%, with profit after tax at SEK 441 (393) million
This translates for shareholders to earnings per share of SEK 1.83 (1.63) before and after dilution,
Interim expansion totalled 23 (29) new customer agreements signed, with 29 (24) new customers casinos launched
Key Q3 Updates
Key events included games launched with British Columbia Lottery Corporation in Canada and Norsk Tipping in Norway, the Beta launch of NetEnt’s affiliate business, the initial customer launch in newly regulated Lithuania, and a games launch at Hard Rock New Jersey.
The key personnel updates at NetEnt included the appointment of Lars Johansson as acting CFO.
With expansion into locally regulated markets being the self-described cornerstone of NetEnt’s business and sustainability strategy, the scale of new local markets of entry may have the most telling impact on NetEnt’s near term fortunes moving forward.