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NEWS 25 April 2019

NetEnt Q1 revenue and profit fall after Nordic "slowdown"

By Tim Poole

Nordic countries accounted for "almost the entire slowdown," as NetEnt suffered a year-on-year fall in both revenue and profit for Q1.

CEO Therese Hillman admitted to Gambling Insider in December she was not happy with the supplier’s recent financial performance.

But NetEnt has not yet been able to buck that trend, with a focus on improvement within the organisation and regulatory headwinds in Sweden attributed to its Q1 trading results.

Revenue fell 3% to SEK 418m ($43.7m), while operating profit dropped 6% to SEK 126m and net profit fell 18% to SEK 120m.

NetEnt did enjoy some success, however, with EBITDA growing 8% to SEK 196m, corresponding to a margin of 47%, an increase from 42.2% for Q1 2018.  

Hillman said: "The Nordic countries accounted for almost the entire slowdown, mainly due to lower volumes in Sweden as the new regulation was introduced at the start of the year.

"The new rules have impacted our customers and players to an extent that we had not foreseen; the combined effect of fewer players and lower average revenue per user has led to a weak start on the new regulated market."

NetEnt recently signed an online casino supplier agreement with DraftKings in New Jersey, as it bids to boost its current financial performance.

RELATED TAGS: Online | Casino | Financial
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