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NEWS 26 October 2018

New games boost Q3 revenue for NetEnt

By Matthew Enderby

Online casino supplier NetEnt has reported revenue of SEK 449m ($48.9m); a growth of 11% year-on-year.

Operating profit (EBIT) from Q3 was SEK 172m with a margin of 38%, and SEK 612m for the year up to September, with a margin of 47%.

Q3 profit after tax was SEK 155m and the year to September has seen post-tax profit of SEK 441m.

The supplier launched games with British Columbia Lottery in Canada and Norsk Tipping from Norway in this period, and attributes partial Q3 growth to these launches and the release of new games.

Therese Hillman, Group CEO at NetEnt, said: “The third quarter was marked by a strong start thanks to the successful release of the game Jumanji.

“Our net cash position provides us with financial flexibility and allows for continued solid cash returns to shareholders.”

In the quarterly report, Hillman discussed the importance of plans to expand in locally-regulated markets. She said that these markets accounted for 35% of NetEnt’s revenue for Q3.

She said: “With new customers in the important WLA segment, such as Norsk Tipping, ATG, Svenska Spel, Veikkaus and British Columbia Lottery Corporation, we can reach a larger player base and generate additional revenues in the years to come.

“We welcome the re-regulation in Sweden next year, as the new gaming law means that all qualified operators have to obtain a license. This creates a better environment for both players and gaming companies.”

With operating margins remaining unchanged and EBIT increasing 11%, Hillman points to higher volumes, a weaker Swedish krona and improved efficiency in explanation.

She said: “We continue to make efforts to lower overhead costs and to optimise the organisation for commercial drive and increased pace of output, and I see room for improvement next year in several areas.

“The business generates strong cash flows and at the end of the period, we had a net cash position of SEK 362million.”

Looking ahead to Q4, Hillman said NetEnt has five new slow games scheduled for release.  

RELATED TAGS: Online | Casino | Legal & Regulatory
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