NetEnt targets Spain and New Jersey

NetEnt targets Spain and New Jersey

Tuesday, April 28, 2015 Totally Gaming

Roland Glasfors, head of investor relations at Net Entertainment (NetEnt) has told TotallyGaming.com the firm will target Spain and New Jersey after reporting an excellent start to 2015.

The gaming systems provider said revenue in Q1 2015 amounted to SEK258.3m (€27.5m/$29.9m), which was up 37.1 per cent on Q1 2014.

The Sweden- and Malta-based company said operating profit was up 598 per cent to SEK81.8m in the opening period of this year, while NetEnt’s operating margin increased from 27.2 per cent to 31.7 per cent.

The growth was based on 11 new licence agreements in a number of markets and the launch of seven new customers’ casinos in the three months to March 31, but Glasfors said that the company's focus for the coming year is gaining licences and launching operations in Spain and New Jersey.

"As we have previously stated, we are hoping to obtain a Spanish license this year, after which we could launch our games and see the first revenues," Glasfors told TotallyGaming.com.

"The licensing process in New Jersey continues according to plan with the aim to offer our products and services to this market in the second half of 2015.

"We don't give any detailed forecasts but our growth strategy is to expand on regulated markets and North America and Spain are both very interesting long-term initiatives for us."

NetEnt's standout new agreements include deals with Codere in Spain, Gamesys in the UK and Danske Spil in Denmark, while it is also putting some contracts on hold in Italy relating to companies that have not begun the licensing process.

The company's rising number of partners has resulted in huge growth levels, but the fast pace of development is something that NetEnt has become used to.

"I would note that NetEnt has grown revenues by around 23 per cent per year in the past five years, so a high growth rate is nothing new to the company," Glasfors said.

"NetEnt sees growing demand for the company´s products. Several investments, related to new markets and gaming solutions, which have been carried out in the past years, are expected to contribute positively to revenues during 2015 and onwards.

"At the end of the first quarter of 2015, the company held agreements with 22 new customers that had not yet launched, including bwin.party, Codere, Danske Spil and Gamesys. With this in mind, it is NetEnt’s ambition to achieve continued good sales growth in 2015."

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