Robust H1 has NetEnt Thinking Forward

NetEnt has grown in Q2 and H1, with positive implications for the rest of the year and beyond. 

The Growth

In its interim report, what most consider the industry’s primary supplier posted growth of 15.4% for its H1 interim report, with the revenue jump totalling SEK 805m.

The Profits

The operating profit for the Stockholm-based company climbed to SEK 281m for an increase of 12.2% on last year’s total of SEK 251m, with operating margin at 35%. Organizational profit after taxes grew at a similar rate, jumping 9.6% to SEK 258m.

Reaching Out Farther

The report also disclosed the signing of a full and robust 21 new customer agreements facilitating the launch of 14 new casinos by NetEnt customers in the first six months of 2017.   

Most Profitable Jurisdictions

The two largest markets for the period were the UK and Italy, with mobile gaming bringing in over half of NetEnt’s revenues by June.   

Expansion

The report covered NetEnt’s further implementation in Q2, through obtainance of a new supplier’s licence for British Columbia, Canada and the launch of operations in the Serbian regulated market.

As Per Per

NetEnt President and CEO Per Eriksson expressed his optimism thusly:

“During June, mobile games contributed more than half of our revenues while Britain was our largest geographic market for the quarter. For the second half of 2017, we see conditions for continued solid growth.”

Trading Boost

The good news inspired NetEnt shares up over 5 per cent Thursday morning after the report was released. 

Reinvesting in the Home Front

In Sweden, where the company is based, revenue growth was reported as slower, which is actually a good thing in this case, as Per revealed that his organisation is reinvesting in its land-based holdings, infrastructure, and growth: 

“We continue to hire more employees and develop our platform...to increase our output capacity, enter more regulated markets and integrate a large number of new customers.”

...to Bolster Growth

Eriksson further advised that the re-investment will continue through 2017 to sustain growth and expansion into increasingly large and diverse economies of scale. 

Outlook

NetEnt looks to be achieving sustainable growth through an effective ebb and flow between outreach and internal reinvestment.