The leading high-quality gaming solutions supplier NetEnt published a financial report for its 2016 fourth-quarter and annual results, marking a strong and consistent growth in what is considered as one of the most successful years of the brand.
The President and Chief Executive Officer of NetEnt Per Eriksson commented on the company’s performance, calling 2016 “another exciting year” and saying that the leading premium gaming software provider has reached record revenues, earnings and cash flow over the twelve-month period.
Mr. Eriksson highlighted a number of important events for the supplier, including a number of game launches, new customers additions as well as entries in new regulated markets worldwide. The investments that had been made in terms of new large investments kept the company’s focus on enhancing its platform and developing new mobile solutions which was expected to support the future growth of the company in the industry, according to NetEnt’s Chief Executive Officer.
NetEnt revealed a strong growth in its revenues over the fourth fiscal quarter, with the revenues amounting to SEK 400 million. The supplier also said that its operating profit over the period between October and December 2016 rose by 28.1% to SEK 156, with an operating margin of 39%. NetEnt’s profit after tax increased by 29.6%, reaching SEK 150 million.
Over the three-month period, a the company added a total of 13 new partnership agreements, and 12 new customers’ casinos were officially launched on the Internet.
The company highlighted a number of events of great importance for it as a leading gaming content supplier which happened over the last fiscal quarter. First, NetEnt revealed that the retail gaming machines deal inked with Gauselmann was quite important for it in terms of its market presence on the territory of Italy. On the other hand, the retail gaming machines agreement of NetEnt with Paddy Power in the UK was beneficial for the company, too, as Great Britain turned into a massive market for the gaming content developer.
But that was not all. The high-quality software supplier reached two entirely new markets if quarter four, namely the ones of Bulgaria and Portugal, consolidating its presence on a global scale and reaching new customers. The web-based games distribution deal with Codere was also greatly valued by NetEnt, as it provided it with an enhanced presence in Mexico.
When it comes to the full-year performance of the company, NetEnt’s annual revenues marked a stable growth by 28.5% to SEK 1,455 million. The company’s operating profit also increased, reaching SEK 536 million after a 33.4% boost, with an operating margin amounting to 36.8%. There was also an increase of 34.9% in the full-year profit after tax which amounted to SEK 504 million.
Overall, a total of 45 new customers were added in the period from January to December. Also, 34 new customers’ casinos were launched in 2016. what is more, another 31 partnership contracts were signed with new customers of the company at the end of 2016, with their online casinos still not being launched.
When it comes to the future expectations of the company for its market presence in 2017, NetEnt revealed that it expects its revenues over the first three months of 2017 to be in line with the ones reported in the fourth fiscal quarter of 2016.
The content supplier also said that solid growth is expected until the end of 2017, thanks to a strong portfolio of new games, increasing market share in the UK regulated market, new customer additions and casino launches, as well as constant mobile growth. The expansion of the company in North America is also expected to have a beneficial impact on its performance over the current fiscal year.
- Author
Olivia Cole
