Casino Games Developer NetEnt Reports Year on Year Growth

Fact checked by Jeffrey Nel

casino-games-developer-netent-reports-year-on-year-growthThe Swedish games developer, NetEnt, whose excellent titles are carried by multiple South African facing online casinos, reported year on year growth for the full year of 2017.

Among the key highlights of NetEnt’s 2017 financial report:

• The company saw revenue grow 11.7%. While its 2016 revenue was SEK 1.69 billion (R2,130,624,0000), this number increased to SEK 1.69 billion in the 12 months leading to December 31st, 2017.
• Operating profits climbed 9.5% year on year.
• Profit after tax was shown to be up 9.5%.
• Earnings per share grew from SEK 2.10 (R3.06) in 2016 to (R3.36) in 2017.
• A cash distribution was offered to shareholders of R3.28 per share – the same amount that was proposed at the end of the previous year.
• Fourth quarter revenue was 4.7% compared to the same period in the year before.
• Operating profit dipped 3.9% and operating margin dropped from 39% to 35.8%.

According to Per Eriksson, the president and CEO of NetEnt, 2017 was “another eventful year”, noting that NetEnt had experienced profitable growth.

Preliminary results posted last month indicated that NetEnt would post lower than expected results in the final quarter of the year, and Eriksson referred to these numbers, confirming that “we had expected a much better outcome.”

“Our strategy to grow on regulated markets remains in place and during 2017 we terminated deliveries of games to operators in Australia, Poland and Czechia, which affected revenues negatively by three percentage points in the fourth quarter,” said the CEO.

“The global market for online gaming continues to grow, supported by digitalisation and the mobile development; we are challenging the traditional gaming industry with our digital business model and see that the migration to online from offline continues unabated.”

Looking ahead, Eriksson said that it expects to see conditions for profitable growth in 2018, supported by a large contingency of new games, growing revenues from regulated markets around the world, a mobile channel and new customers.

“We look forward to a new year with more game releases and product news than ever for NetEnt,” he said.

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Lawrence Muller

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Fact-checked by: Jeffrey Nel