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NetEnt publishes annual report 2016

Besides the launch of an incredible video slot trilogy and a brand new Live Casino Mobile product, NetEnt also continues to reach new record levels in terms of revenues, profits, cash flow, and transactions. It was another exciting year and revenues for the fourth quarter increased by 23.9% and for the full year by 28.5%. Keep on reading for some more numbers coming from NetEnt’s year-end report 2016, and the quarterly report from October to December 2016 while I also give you a short overview of NetEnt’s highlights in Q4 and 2016.

Per Erikson: ”2016 was another exciting year for NetEnt with new record levels in revenues, earnings and cash flow. The fourth quarter developed well – revenues increased by 23.9% and the operating margin improved to 39.0%. Great Britain continues to offer great growth potential for us and in December, it became our largest geographical market for the first time. Looking ahead in 2017, we see conditions for continued solid growth, supported by a strong pipeline of new games, UK, mobile, new customers to launch as well as our expansion in North America.”


Q4 NetEnt

The entire year was successful which is also due to the fourth quarter which developed well, even compared to a strong 2015, with revenues increasing by 23.9% in SEK and by 18.5% in EUR. The operating margin in the fourth quarter of 2016 improved to 39.0 percent, mainly due to better scalability in the business. Mobile casino games proved their importance as a growth driver again, accounting for an incredible 43% of revenues in the quarter.

Some important highlights, as can also be found in my article NetEnt Highlights 2016, took place in the fourth quarter including the new retail deals for gaming machines with Gauselmann in Italy and Paddy Power in the UK. My favourite highlight involved NetEnt’s enter into the Latin American online casino market by extending their partnership with Codere and, therefore, entering the regulated online casino market in Mexico.

Per Erikson: Looking ahead in 2017, we see conditions for continued solid growth, supported by a strong pipeline of new games, UK, mobile, new customers to launch as well as our expansion in North America.

Q4 highlights:
– NetEnt 13 new customer agreements and 12 new customers were launched
– NetEnt signed retail deals for gaming machines in Italy and the UK with Gauselmann and Paddy Power
– NetEnt went live in the new regulated markets Portugal and
– NetEnt entered the Mexican online casino market via one of the leading operators, Codere
– Entering Mexico, NetEnt also made its entry into the Latin American gambling market
– NetEnt applied for an online casino license in British Columbia, Canada.

NetEnt’s year-end report 2016

NetEnt hit again new record levels in revenues, earnings and cash flow in 2016. Revenues for the full year increased by 28.5% to SEK 1,455 (€1,132) million while the operating profit amounted to SEK 536 (€402) million which means an increase of 33.4%. The company signed a dazzling number of 45 customer agreements, the highest number ever, and 34 customers’ online casinos were launched throughout the year.

Fact: In 2016, NetEnt managed almost 36 billion transactions in our systems, which is 19 times more than the total number of transactions on the New York Stock Exchange during the same period.

Highlights of 2016:
While an extended list of highlights can be found in my article NetEnt Highlights 2016, there are a few highlights I would like to emphasise.

– One of the highlights, or actually three of them, is the NetEnt Rocks trilogy including three high-quality branded games in which three of the best rock artists/bands are in the spotlights. Guns N’ Roses™, Jimi Hendrix™, and Motörhead™ were launched throughout 2016 and Guns N’ Roses™ was named best game of the year at the EGR Operator Awards in London.

– In the beginning of March 2016, NetEnt became an associate member of the World Lottery Association (WLA) which can support future growth for NetEnt as a supplier to other WLA-members and is, therefore, of strategic importance to the company.

– In May NetEnt obtained casino licenses from the online gaming regulator in Romania

– In the third quarter of 2016, NetEnt launched another trailblazing casino product, NetEnt Live Mobile, the closest a mobile player can get to a real-life casino experience on mobile.

– December seemed to be one of the most important quarters of the year regarding new markets. After obtaining an online casino license in Romania earlier in 29016, in December NetEnt entered another three regulated online casino markets: Mexico, Portugal, and Bulgaria.

By on 28 February, 2017