Positive results for Net Entertainment in Q3
Published on by Adam
Casino game provider giant Net Entertainment has just presented its financial results for Q3. With games launched on the regulated market in Romania and a live casino product for mobile, the company is aiming to grow the UK market further. Read on to learn more.
Third quarter for Net Entertainment
Net Entertainment’s growth strategy has been proving successful as it keeps delivering results, ultimately resulting in growth in new markets along with new products and even more customers. Their aim for the rest of the year is to continue gaining a strong sales growth.
Third Quarter review
- Revenues for the third quarter increased by 27.7% to SEK 357.4 (279.8) million
- Operating profit amounted to SEK 129.4 (105.3) million, an increase of 22.9%
- Operating margin was 36.2 (37.6)%
- Profit after tax amounted to SEK 119.2 (97.6) million, an increase of 22.2%
- Earnings per share amounted to SEK 0.50 (0.41) after dilution
- 11 new customer agreements were signed, 8 new customers’ casinos were launched
Events launched in the third quarter
Q3 was filled with growth and positive new steps for Net Entertainment. Along with launching new games with Rank Group in the United Kingdom, more slots were launched for several operators in the heavily regulated market of Romania. Furthermore, mobile live casino was also successfully launched for customers for the first time.
Net Entertainment has also launched casino games with more than 10 casino operators in Spain and certified over 60 of its slots. The Spanish market has consistently grown stronger this year which has in turn been reflected in the company’s revenues.
Great Britain is one of the markets which is important for the company, but the weaker pound has sadly had a negative effect of around three percentage points on revenue growth when compared to the same quarter last year.
In the US, Net Entertainment has been gaining more market shares in the online casino market in New Jersey. There is hope that Pennsylvania will soon open up to online casino game. The company is aiming to enter the Canadian market by applying for a license in the province of British Columbia in the coming months.
Products launched by Net Entertainment
Mobile gaming has been growing significantly with revenues increasing by 83% compared to last year and which in turn, accounted for 40% of revenues in this quarter. NetEnt Live Mobile was launched last month with the aim of improving player experience and the way operators use live casino. This latest technology uses enhanced streaming, sound and video and the opportunity of enjoying live casino on the go. The third game from the NetEnt Rocks series, Motorhead was also released late last month and so far has had success.
What the future holds for Net Entertainment
The company is seeing a growing demand for its product and strong sales growth for the remainder of 2016. The company is also looking at recruiting more employees, develop its own platform and adapting to new regulated markets with the aim of integrating more customers.