NetEnt cites ongoing growth strategy as finances jump in Q1

Per Eriksson, chief executive and president of NetEnt, has praised the company’s ongoing growth and expansion strategy as one of the main drivers behind a year-on-year jump in key finances during the first quarter of 2016.

Revenue in first three months of the year amounted to SEK345.4 million (€37.6 million/$42.6 million), which represents an increase of 33.7% on the SEK258.3 million in the corresponding period last year.

Operating profit jumped 56.6% year-on-year to SEK128.1 million, with operating margin also increasing to 37.1%.

Profit after tax also grew by 64.1% to SEK121.7 million, while earnings per share after dilution also jumping from SEK1.86 to SEK3.04.

NetEnt also noted that it secured nine new licence agreements in the period, in addition to launching eight new customer casinos.

“We have had a strong start to the year with high growth in revenues, profits and cash flow,” Eriksson said.

“We follow our growth strategy and the expansion in Europe and North America continues.

“We also extended our collaboration with PokerStars and went live with our games on their site in the state of New Jersey.

“We have successfully signed up all gaming operators in New Jersey and have quickly gained market share and traction with our games there, which is good for our future growth not only in New Jersey, but also in other US states if and when they decide to reregulate the online gaming market.

“In January we released the much-anticipated slot game Guns N Roses, which became our most successful game release so far.

“The game is part of our new concept NetEnt Rocks, which also includes upcoming games based on music and graphics of Jimi Hendrix and Motörhead.

“We have an exciting year ahead of us and I am positive about the future.”

Related article: NetEnt seals licensing agreement with PokerStars in New Jersey