NetEnt delivers solid full year performance

NetEnt delivered a solid full year 2018 performance reporting a revenue rise to SEK 1,782 million and EBITDA of SEK 816 million.

Key performance highlights:

Revenues for the full year amounted to SEK 1,782 million (2017: SEK 1,636 million)

EBITDA was SEK 816 million (2017: SEK 740 million), a margin of 45.8 percent (2017: 45.2 percent).

Adjusted for reorganization-related costs in the fourth quarter and severance pay for the previous CEO, EBITDA was SEK 844 million, a margin of 47.4 percent.

Operating profit (EBIT) was SEK 601 million (2017: SEK 582 million), a margin of 33.7 percent (SEK 35.6 percent).

Adjusted for aforementioned costs and the write-down of a VR-project, EBIT was SEK 634 million (2017: SEK 582 million), a margin of 35.6 percent (2017: 35.6 percent).

Profit after tax of SEK 577 million (2017: SEK 547 million).

Earnings per share of SEK 2.40 (2017: SEK 2.28) before and after dilution.

Proposed cash return to shareholders of SEK 2.25 (2017: SEK 2.25) per share

31 (2017: 37) new customer agreements signed, and 38 (2017: 35) new customers’ casinos launched.

Locally regulated markets accounted for 37 (33) percent of NetEnt revenues in the fourth quarter. Including Sweden, more than half of revenues were  from locally regulated markets.

In December 2018, Our readers will recall the company underwent a corporate restructure towards a more decentralized organisation with clearer areas of priority and accountability. Key management positions were strengthened across the group and a new head of Live Casino appointed – an area that NetEnt says it will continue to invest in.

A key focus in the coming year includes ramping up development to facilitate between 30 and 35 new games, compared to 21 in 2018.

55 full-time jobs, primarily in Stockholm and in the corporate support area, will be cut in order to keep costs under control and to allow for continued investments into increased production, the company said.

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