NetEnt chief forecasts further success after third-quarter growth

NetEnt chief forecasts further success after third-quarter growth

Thursday, October 23, 2014 Totally Gaming

After having achieved significant growth during the third quarter of 2014, Per Eriksson, chief executive officer of Net Entertainment, has told TotallyGaming.com that he expects the gaming content developer to register further success.

Revenue in the third quarter amounted to SEK217.2m (€23.6m/$29.9m), which represents an increase of 41.8 percent on the SEK153.1m posted in the corresponding period last year.

The company also reported that operating profit rocketed by 64.9 percent to SEK73.4m while operating margin increased from 29.1 percent last year to 33.8 percent in the most recent quarter. In addition, profit after tax grew from SEK40.2m in Q3 of 2013 to SEK67.5m this year.

NetEnt noted that its success in the third quarter has had a significant impact on its year-to-date results.

Revenue for the first nine months of the year totalled SEK610.6m, which is 35.5 percent higher than the same point last year. In addition, operating profit is up 46.1 percent to SEK124.2m while profit after tax jumped from SEK 114.6m to SEK166.1m.

Speaking to TotallyGaming.com about the results, Eriksson said that the company’s ongoing initiatives have not yet reached their full potential and he is confident NetEnt can achieve further growth.

“It is clear that we are growing faster than the market and gaining market share,” Erkisson told TotallyGaming.com.

“We see growth coming from both new and existing customers, game transactions are up 37 percent compared to last year which shows that NetEnt’s games and products are market leaders. New customers and currency effects also contributed positively to the revenue growth.

“We see a solid underlying growth and high demand for NetEnt’s products. During the first nine months 21 new customer agreements have been signed, the operators on the UK market are growing and 34 customers have launched our Live Casino product.

“These initiatives and new customers have not yet reached their full capacity and we expect them to contribute positively to our growth during the remaining of 2014.

“We have 14 new customers yet to launch including Rational Group and bwin.party and we also have a strong sales pipeline. We have signed agreements with the largest operators in the UK, the largest market for online casino in Europe. We still have a low market share in the UK so we have high expectations on what this market can offer in terms of future growth for NetEnt.

“We are also continuing our strategy to expand into new markets where the preparations to enter North America has started with the licensing process in New Jersey. I also expect that we will be live in Spain during the first half of next year. At the same time we are evaluating new opportunities in Asia.

“In short, the future of NetEnt is very bright.”

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