NetEnt hails growth strategy as finances rise in third quarter

NetEnt has cited the ongoing impact of its growth strategy as the main reason behind a year-on-year increase in key finances during the third quarter.

Total revenue in the three-month period amounted to SEK357.4 million (€36.9 million/$40.2 million), an increase of 27.7% on the SEK279.8 million posted in the corresponding quarter last year.

Operating profit was up 22.9% year-on-year to SEK129.4 million, with a slightly lower operating margin of 36.2%, while profit after tax hiked 22.2% to SEK119.2 million.

The impressive third-quarter performance placed NetEnt’s revenue for the first nine months of the year at just under SEK1.1 billion, up 30.3% on last year.

Operating profit for the period was up 35.8% to SEK380 million, with profit after tax at SEK354.5 million, up 37.2% year-on-year.

Per Eriksson, president and chief executive of NetEnt, said: “NetEnt’s growth strategy keeps delivering results – we grow in new markets, with new products and with more customers.

“During the quarter we launched our games in the regulated market in Romania and we rolled out our live casino product for mobile.

“The UK continues to be an important growth driver but the weaker pound had an estimated negative effect of about three percentage points on revenue growth compared to the same quarter last year.

“We see growing demand for our products and our ambition to achieve continued strong sales growth in 2016 remains.

“We’ll increase the number of employees, develop our platform, adapt the company to new regulated markets and integrate more and more customers.

“As previously communicated, we foresee higher costs and larger investments in 2016 than last year – we keep investing to enable continued strong growth going forward.”

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