NetEnt success story continues

NetEnt, a Swedish online gambling software and games supplier, has released its year-to-date and third quarter performance results, showcasing continued progress.

Third quarter results included the following highlights:

* Revenues increased by 28.8 percent to SEK 279.8 (217.2) million;
* Operating profit reached SEK 105.3 (73.4) million, an increase of 43.5 percent;
* Operating margin was 37.6 (33.8) percent;
* Profit after tax amounted to SEK 97.6 (67.5) million, an increase of 44.5 percent;
* Earnings per share amounted to SEK 2.44 (1.69) before and after dilution;
* Nine licence agreements with new customers were signed, six new customers’ casinos were launched.

Important events in the third quarter included:

* Signed customer agreement with Gala Coral in the UK;
* Signed customer agreement with Golden Nugget in New Jersey, USA;
* Granted transactional waiver to launch games with Borgata and bwin.party by the regulator in New Jersey;
* Launched games with Borgata in New Jersey.

For the first nine months of 2015 ended September 2015, the company reported:

* Revenues up by 32.5 percent to SEK 809.3 (610.6) million;
* Operating profit rose to SEK 279.8 (181.3) million, an increase of 54.3 percent;
* Operating margin was 34.6 (29.7) percent;
* Profit after tax amounted to SEK 258.3 (166.1) million, an increase of 55.5 percent;
* Earnings per share amounted to SEK 6.45 (4.16) before and after dilution;
* 29 licence agreements were signed with new customers and 21 new customers’ casinos were launched.

CEO and president Per Eriksson said that the third quarter featured new record levels in both revenues and profits, and NetEnt reached an historic milestone as its games became available on the regulated market in New Jersey, USA for the first time.

“At the end of the quarter our net cash position was SEK 316.8 million, and the number of game transactions in our systems grew by 26 percent to 6.6 billion in the quarter,” he said.

“A key part of our growth strategy is to enter new regulated markets and during the quarter our market entry in the US state of New Jersey continued at full speed. We are now also awaiting transactional waivers to go live with Caesars Interactive and Golden Nugget.”

Eriksson revealed that in the third quarter the company opened a new office for game development in Krakow, Poland to add more capacity in order to meet the demand for NetEnt products.

He said that NetEnt continues to develop its Live Casino offering and has recently started to work on a mobile solution.

“We continue to sign up new operators while the number of customers to be launched stood at 26 at the end of the quarter, which should support our growth going forward,” he concluded.

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