NetEnt posts Q3-2017 and interim nine month reports

Online gambling games and software provider NetEnt has posted another set of impressive third quarter and January to September results, highlighting the following:

Third quarter 2017

* Revenues for the third quarter increased by 12.3 percent to SEK 401 (357) million;
* Operating profit up 20.5 percent year-on-year at SEK 156 (129) million;
* Operating margin was 38.9 (36.2) percent;
* Profit after tax up 19.4 percent SEK 142 (119) million;
* 8 new customer agreements were signed and 10 new customers’ casinos were launched.

Important events in the third quarter

* Retail deal signed with Eurogames in Italy for land-based gaming machines;
* Live Rewards launched for Live Casino;
* New game functionality was introduced as part of NetEnt Engage;
* Free-round functionality was launched with first customer in New Jersey.

First nine months 2017

* Revenues up 14.3 percent y-o-y at SEK 1,206 (1,055) million;
* Operating profit up 15 percent at SEK 437 (380) million;
* Operating margin was 36.3 (36.0) percent;
* Profit after tax up 122.9 percent at SEK 400 (355) million;
* 29 new customer agreements were signed and 24 new customers’ casinos were launched.

NetEnt chief executive Per Eriksson, said:

”The third quarter was another solid quarter for NetEnt. Revenues increased by 12 percent and the operating margin was significantly better than in the third quarter of last year. Mobile games and regulated markets such as the UK, Italy and Spain contributed the most to our growth.”

He revealed that mobile games accounted for 52 percent of total revenues in the quarter, and that NetEnt systems managed 10.2 billion gaming transactions during Q3-2017, an increase of 18 percent compared to the corresponding period of last year.

Detailing future plans, Eriksson said that in the final quarter of the year NetEnt has already released thrilling new games such as Planet of the Apes and Finn and the Swirly Spin, the latter of which has been developed to provide the ultimate mobile gaming experience.

“Live Casino is showing solid growth, especially the mobile product, which has been very well received by our customers, Eriksson said. “In the third quarter, we continued to roll out Live Rewards, which is an innovative set of bonus functions that make our games more thrilling for players and operators. We have expanded our Live studio in Malta and going forward, we will be offering more exclusive tables to our customers.

“In the fourth quarter we are making our Live Casino offering more complete by launching Standard Black Jack for mobile, which has been on our customers’ wish list for some time.”

Reporting strong growth outside the Nordic region, Eriksson revealed that Great Britain and Italy contributed the most growth in the quarter, but strong growth was also seen in other regulated markets such as Spain and Denmark.

He held out optimistic hopes for Pennsylvania following Thursday’s news that the state Legislature has finally approved licensed and regulated online gambling.

“We also see interesting future opportunities in Latin America, and in early October we signed our second customer agreement for the regulated market in Mexico, with Caliente, which is one of the leading operators in that market,” he said.

Eriksson says NetEnt’s future remains bright, supported by solid growth and increasing market share in the United Kingdom. Plans include increasing headcount in order to strengthen output capacity, enter more regulated markets and integrate many new customers.

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