NetEnt publishes Q1 Interim Report 2017
Yesterday was the day that NetEnt published another successful interim report, the one that involves the first quarter of 2017. Besides revenues increasing with 15.2% up to SEK 398 million (€345 million) compared to the same quarter in 2016, a lot of exciting news was published in the same period. NetEnt also signed more customers agreements than ever before while many new NetEnt Games were launched.
“We continued to deliver on our growth strategy in the first quarter and revenues increased in line with our earlier comments about the quarter. For the first time, NetEnt’s games were launched on the regulated market in Mexico and the Company announced that the first game for Virtual Reality (VR) will be developed in 2017. For the rest of 2017, we see conditions for continued solid growth supported by new games, increasing market shares in the UK, mobile growth, many new customers to be launched and our ongoing expansion in North America.”
Some numbers from NetEnt in the first quarter in 2017
As you can read in the quote from Per Erikson, President and CEO at NetEnt, the first quarter of 2017 was one the company can be proud of. So much happened in the first three months of 2017 while revenues for the first quarter increased by 15.2% to SEK 398 million (€345 million). Increase in numbers can be seen in operating profits, and profit after tax as well (although a small increase this quarter). The number of gaming transactions in NetEnt’s games amounted 9.8 billion in the first quarter, an increase of 11%, a clear sign of growth.
Another successful quarter so it seems, even though I’ve seen higher percentages in the past. These lower percentages were already predicted due to higher office rents and IT costs.
NetEnt’s highlights first quarter 2017
That the NetEnt Games are still increasing in popularity is proved by the number of new customers signed between the 1st of January and 31st of March.
An amazing 15 new customers were signed by NetEnt, a new record. Never before NetEnt signed as many new customers in just one quarter. Besides, six new customers launched the NetEnt Games at their platforms.
Big news during NetEnt’s Q1 2017, was the launch of the first NetEnt Games in Mexico. It was earlier that NetEnt signed a second license agreement with existing customer Codere, this time to enter the regulated online casino market in Mexico. With Codere being one of the largest casino operators in Mexico, and in the possession of an operator license for both land-based and online casino operations, the agreement is of big importance for NetEnt.
The NetEnt Games going live in Mexico at the beginning of February was an important highlight. With the launch of the NetEnt Games in Mexico, NetEnt also went live in Latin America, an online casino market that will slowly open up in the upcoming years and a promise for the future.
It was at ICE 2017, in London in February, that NetEnt showcased its first VR game Gonzo’s Quest™ that will be released within 12 months. NetEnt showed the world that they are absolutely in the forefront when it comes to VR Gaming. NetEnt is convinced that VR will play an important role in future gaming and it’s why this kind of development has become a priority for the company.
In the first quarter, NetEnt launched Live Casino Common Draw Blackjack for mobile being the only supplier on earth that offers this type of blackjack to mobile players. With this launch, NetEnt proves again to be a pioneer in online, live, and mobile casino gaming. The game offers an unlimited number of players at the table which is unique.
Also new at the NetEnt Live Casino is Live Rewards, a bonus program for Live Casino players, another exciting feature in this area and expected to be launched in the second quarter.
NetEnt signed two very strong brands for their new branded games which were also announced at the ICE Totally Gaming conference. Both branded video slots, the iconic film brand Planet of the Apes™ and Emojis®, will be launched further on in 2017 bringing two truly unique and thrilling games. The EmojiPlanet™ slot, launched in August, will show something completely different and with a social twist. A NetEnt slot to look forward to.
Proposed new gaming legislation in Sweden
An online casino market closely followed by many in the iGaming industry is the Swedish online casino market. In March, the gaming commission finally presented its proposal for new gaming legislation in NetEnt’s country of origin, Sweden. According to NetEnt, the proposal seems to set commercially viable conditions for all the industry’s participants including NetEnt and many NetEnt Casinos. NetEnt indicates that it is welcoming such a modern gaming legislation which leads to a high channelization to regulated gaming forms. Proved in the past, such modern gaming legislation creates a more secure environment for both players and its participants. Of course, NetEnt intends to apply for a B2B-license as an industry supplier soon as this opportunity arises.
NetEnt is already in the possession of such casino licenses and certifications in many European countries such as Denmark, UK, Malta, Portugal, Romania, Bulgaria, Italy, Belgium, Estonia and Spain.