NetEnt reveals revenue and profit growth in Q1

NetEnt has reported year-on-year growth across revenue and operating profit for the three months to March 31.

Revenue in the first quarter came in at SEK430m (€42.4m/$50.6m), up from SEK393m in the corresponding period last year.

Operating profit climbed from SEK127m to SEK134m with a margin of 31.2%, while profit after tax was also up from SEK115m to SEK146m.

NetEnt noted that severance pay for previous chief executive Per Eriksson of SEK6m was included in operating profit, and when adjusted for this cost, the total came in at SEK140m with a margin of 32.5%.

Eriksson was removed from the company last month after the NetEnt board ruled that the performance of the group “has not been as it should”.

Chief financial officer Therese Hillman, who is currently serving as acting chief executive and president, said: “While NetEnt continues to focus on growth, measures were initiated in March to enable margin expansion going forward.

“Among other things, the company is taking action to reduce costs; for the remainder of the year, we see conditions for better growth, supported primarily by regulated markets, more new games and new customers.

“We continue to work on optimising the organisation and to make sure that revenues grow more than costs.”

Meanwhile, the NetEnt Nomination Committee will this week propose electing Fredrik Erbing as the new chairman of the board.

Vigo Carlund, the current chairman of NetEnt, has opted to stand down from the role for personal reasons.

Erbing has been a board member at NetEnt since 2008 and also a member of the Audit Committee.

Carlund said: “During my two board tenures I have been part of the board of NetEnt for a total of 15 years, 11 of which as chairman.

“Due to personal reasons not related to the company, I have now decided to leave the board.

“Fredrik Erbing has great knowledge about the sector and NetEnt, and he has played an important role for NetEnt’s development during his time at the board.

“This makes him suitable as chairman of the board of NetEnt.”

NetEnt will vote on the decision tomorrow (Wednesday) at its Annual General Meeting.

Related article: CEO Per Eriksson removed by NetEnt