Lower than anticipated revenue growth at NetEnt

In a trading update Tuesday online gambling software and games provider NetEnt reported that preliminary revenues and operating profit in the fourth quarter of 2017 amounted to around SEK 419 million, with estimated operating profit of SEK 150 million –  both numbers below management expectations.

The company claims the difference between market estimates and the preliminary operating profit is due to lower-than-expected revenue growth.

The update notes that during 2017, NetEnt phased out deliveries of games to operators in Australia, Poland and Czech Republic, and this had a negative effect on revenue growth of around three percentage points. In addition, underlying revenue growth in some of NetEnt’s markets was lower than expected in the quarter.

NetEnt’s business continued to generate a solid cash flow in the quarter and the dividend for 2017 will be at least in line with 2016 year’s level, the company said.

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