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Netent Q1-2016 Report
Tuesday, April 19, 2016 : NETENT PERFORMS WELL IN Q1-2016
Revenue up by more than a third and operating profit rises over 50 percent.
Online gambling software provider NetEnt has posted another set of impressive results for the period January-March 2016, noting that revenue growth was up by more than a third and operating profit by over 50 percent.
In his report to shareholders, Per Eriksson, president and CEO, commented:
“We have had a strong start to the year with high growth in revenues, profits and cash flow.
"In January we released the slot game Guns N Roses, which became our most successful game release so far. The game is part of our new concept NetEnt Rocks, which includes upcoming games based on music and graphics of Jimi Hendrix and Motörhead. We have an exciting year ahead of us and I am positive about the future.”
Highlights of the group's Q1-2016 results include:
* Revenues for the first quarter up by 33.7 percent to SEK 345.4 (258.3) million;
* Operating profit of SEK 128.1 (81.8) million, an increase of 56.6 percent;
* Operating margin of 37.1 (31.7) percent;
* Profit after tax of SEK 121.7 (74.2) million, an increase of 64.1 percent;
* Earnings per share reached SEK 3.04 (1.86) after dilution;
* 9 new licence agreements were signed, 8 new customers’ casinos were launched;
* License agreement signed and games launched with PokerStars in New Jersey;
* NetEnt became associated member of World Lottery Association (WLA);
* Administrative Court of Appeal ruled in NetEnt’s favour in tax dispute;
"The number of gaming transactions was 8.9 billion in the first quarter, representing an increase of 37 percent compared to the previous year.
"We have successfully signed up all gaming operators in New Jersey and have quickly gained market share and traction with our games there, which is good for our future growth not only in New Jersey, but also in other US states if and when they decide to reregulate the online gaming market.
"Mobile games and the UK market continue to contribute significantly to our growth. Revenues from the UK almost doubled compared to the same period last year and mobile games represented 33 percent of our gamewin in the quarter, a sharp increase from the level of 21 percent last year."
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