Q1 2017 Results: Steady Ship for NetEnt in New 2017 WatersPublished April 29, 2017 by Lee R
Steady gains in Q1 2017 bolster the booming momentum from 2016’s flurrying finish.
All key financials were up in Q1, starting with revenue. The revenue performance for Q1 reached SEK398 million (€41.4 million/$44.5 million) for a 15.2% year-on-year jump from the SEK345 million posted in Q1 2016.
Other key jumps came included operating profit, up 6.3% year-on-year to SEK136 million; and profit after tax, at SEK124 million for a 1.8% year-on-year jump from Q1 2016’s total of SEK122 million.
A key component of NetEnt’s strategy is expansion. NetEnt was demonstrative in its Q1 announcement of the achievement of 15 new customer agreements in Q1, along with the launch of six new customer casinos.
NetEnt President and CEO Per Eriksson pointed out how the figures confirm that NetEnt is continuing “to deliver” on growth strategy, and discussed new expansion in the quarter:
“For the first time, NetEnt’s games were launched on the regulated market in Mexico and the company announced that the first game for virtual reality will be developed in 2017.”
Master and Commander
Looking ahead to the progression of 2017, President Per sees expansion components of new games, increasing market shares, and mobile growth as grounds for growing the company’s customer base and also predicted further “expansion in North America.”
The Mobile Driver
Mobile growth appears to be the primary driver of sales and expansion for NetEnt, on the heels of a most recent 43% jump in Q4 of 2016, with even bigger numbers expected from 2017 Q1 tabulations.
After record-setting increases in revenues, earnings and cash flow in 2016, NetEnt is certainly adapting the template to sustain growth for 2017. In the new world of iGaming technology, NetEnt seems to be embracing a steady approach to expansion, setting ambitious but realistic goals while relying on marginal variation in the new pace of market growth established thus far.