NetEnt's Positive Quarterly Results Indicate Effective EngagementPublished July 14, 2015 by Lee R
High quality engagement leads to high production values and high user popularity.
Well-known for its slick animations and its sense of humour, NetEnt has worked hard to increase user engagement, and this Swedish developer has demonstrated with its latest quality results that its efforts are really paying off.
Customer Engagement Yields Provider Popularity
NetEnt has been fine-tuning the animation on its slots for some time, combining the presentation with a cheekiness of in-game play which has been well-received by players, as the latest quarterly results indicate.
The January-June interim report for 2015 reveals that in the second quarter of 2015, revenues for the company increased by 32.3% to SEK 271.2 (205.0) million, yielding an operating profit of SEK 92.7 (56.7) million, totaling a 63.3% increase, and yielding an operating margin of 34.2 (27.7)%.
Significant profits after tax were also revealed, jumping 64.9% to SEK 86.5 (52.5) million. The earnings per share were equally bullish, reaching SEK 2.17 (1.33) before dilution and SEK 2.16 (1.32) after dilution.
Expansion Plan Working
The software and solutions provider continued to expand its client base at a healthy pace, reaching licensing agreements with nine new customers, for whom eight new casinos have been launched to date.
The second quarter also saw the launch of services and sites for online heavyweights that included bwin.party, Gamesys, PokerStars and Danske Spil. NetEnt expanded significantly as well, entering North America with a cross-license agreement with IGT, entering Spain with local gaming licenses in Spain and entering the state of New Jersey via two customer agreements signed with bwin/Borgata and Caesars Interactive Entertainment. The company further fortified its position in iGaming-popular UK with the launch of an in-house game for William Hill betting shops. These developments into large, but regulated markets forecasts a much wider distribution of NetEnt games at an international level.
NetEnt President and CEO Per Eriksson affirmed that the company is fulfilling a strategic model of growth through expansion on regulated markets. NetEnt's quarterly figures indicate that the plan is meeting if not surpassing expectations.