Published on 22 October 2015 by Rhi
Everyone who follows the latest news in the igaming industry will know that it’s been a great year for NetEnt. They’ve released a host of instantly successful new slots, signed an army of new casinos and even branched out into brand new markets such as the attractive US market of New Jersey. Their collection of awards has carried on growing and all of this is reflected in their interim report for the period January 2015 – September 2015.
Third Quarter Results (July/Aug/Sept)
The results and increases in revenues, operating profit and profit after tax are, frankly, staggering. With increases of almost 50% across most factors, it’s clear that NetEnt have come a long way in a short time and are taking the market by storm.
- Revenues increased by 28.8% to 279.8 SEK (217.2) million
- Operating profit totalled 105.3 SEK (73.4) million, an increase of 43.5%
- Operating margin was 37.6 (33.8)%
- Profit after tax amounted to 97.6 SEK (67.5) million, an increase of 44.5%
- Earnings per share amounted to 2.44 SEK (1.69) before and after dilution
- Nine license agreements with new customers were signed, six new casinos were launched.
A number of important factors had a huge impact on this third quarter of 2015. This is when the US market became a reality for NetEnt when they signed an agreement with Golden Nugget and were granted transactional waivers by the regulator for Borgata and bwin.party. They even managed to go live this quarter with Borgata following the waiver. As well as this, their UK presence increased when they signed a deal with Gala Coral.
First 9 Months 2015
- Revenues for the first nine months increased by 32.5% to SEK 809.3 (610.6) million
- Operating profit amounted to SEK 279.8 (181.3) million, an increase of 54.3%
- Operating margin was 34.6 (29.7)%
- Profit after tax amounted to SEK 258.3 (166.1) million, an increase of 55.5%
- Earnings per share amounted to SEK 6.45 (4.16) before and after dilution
- 29 license agreements were signed with new customers and 21 new customers’ casinos were launched
Comments from Per Eriksson
Per Eriksson, the President and CEO of NetEnt, released a statement detailing the year so far for NetEnt. A few key points:
The third quarter featured new record levels in both revenues and profits. We reached a historic milestone as our games became available on the regulated market in New Jersey, USA, for the first time.
The share of revenues from mobile continues to grow and accounted for around 28 percent of game win in the third quarter, compared to 16 percent a year ago.
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 signed our third customer agreement – with Golden Nugget – a well-known brand in the US casino industry with large casino resorts in Atlantic City and Las Vegas. Further, we were granted a transactional waiver from the regulator to launch games with bwin.party and Borgata while our full license application is still under review. Subsequently, we could launch our games with Borgata at the end of September and we are now also awaiting transactional waivers to go live with Caesars Interactive and Golden Nugget.
At the end of September we were awarded the prize for Digital Industry Supplier of the Year at the Global Gaming Awards in Las Vegas, a further sign that our offering is appreciated on the market.