NetEnt published its Q2 Interim report a few days ago and I’m happy to announce that another successful quarter followed the first one. Revenues climbed up in both quarters to a total of SEK 697.4 (€529.5) million- an increase of 31.7% compared to the same period last year. Many highlights took place in the first six months of 2016 including the launch of Guns ‘N Roses™ Online Slot and Jimi Hendrix™ Online Slot, brand new gaming licenses obtained in Romania, an agreement signed with Rank Group while another 20 new customer agreements were signed as well.
NetEnt Interim report Q1
NetEnt had an incredible start of the year 2016 with the launch of Guns ‘N Roses online slot™ as one of the highlights. Revenues for the first quarter of this year increased by 33.7% to SEK 345.4 (€258.3) million. In this period, the company signed 9 new license agreements while 8 new customers’ casinos were launched as well.
”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, also including 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,” said Per Eriksson, President and CEO at NetEnt.
But there were some other events in the first quarter that deserve to be mentioned. NetEnt, for example, also signed an agreement with PokerStars in New Jersey. Not long after, the NetEnt Games were launched at the well-known gambling site becoming available to New Jersey players only.
A very important event in the first quarter was NetEnt becoming an associate member of the World Lottery Association (WLA). The WLA is a member-based organization that promotes the interests of state-authorized lotteries around the world. This membership could support future growth for NetEnt as a supplier to WLA-members and is, therefore, of strategic importance to the company.
On Friday, January 15th, a Finnish player in his 40s won an amazing €3.4 million at one of the NetEnt Casino by betting just €4 on the Mega Fortune Dreams™ video slot. Two days later, on January 17th, another player had the same honour, though this time a player from the UK scooped a very attractive €2.7 million while giving the Mega Fortune™ slot a try. If not enough jackpot news already, it was on January 19th that a Norwegian player bet €0.40 playing Hall of Gods™ hitting a €1.6 million jackpot.
That NetEnt is the leading supplier of digital casino entertainment is no surprise and it is because of this that the company keeps on receiving accolades coming from the iGaming industry. During the first quarter of 2016 NetEnt won prestigious awards at the International Gaming Awards, the Gaming Intelligence Awards, and at the EGR Nordic Awards.
NetEnt’s Chief Development Officer, Åsa Bredin, has been placed as Sweden’s seventh most powerful woman in the digital industry. NetEnt has set a goal to achieve a 50/50 gender balance by the year 2020.
NetEnt Interim report Q2
The first quarter was good for many highlights and looking at the Q2 Interim report, I assume the same goes for NetEnt’s second quarter in 2016. Many highlights took place and revenues for the second quarter of 2016 increased by 29.8% to SEK 352.1 (€271.2) million. A total of 12 new customers agreements were signed in Q2 which means a total of 21 new customers have been welcomed by the company in 2016 so far. Six new NetEnt Casinos saw the light in this last quarter as six new customers’ casinos were launched.
”The second quarter featured strong demand for our products and strong growth. Revenues increased by 30 percent and operating profit rose by 32 percent. The operating margin was 34.8 percent, which was an improvement compared to the previous year. I am optimistic going into the second half of 2016 – the conditions look good for continued strong growth,” said Per Eriksson President and CEO at NetEnt
The highlights consisted of an important customer agreement signed and going live at one, obtaining a casino license in Romania, prestigious awards won, and the successful launch of the second part of the NetEnt Rocks slots series. This last event took place on April 21st, the day NetEnt unleashed the much-anticipated Jimi Hendrix™ Online Slot. The first leg in their groundbreaking ‘NetEnt Rocks’ tour was launched in January and, of course, this concerned the Guns ‘N Roses™ Online Slot.
It was just the start of a very successful Q2 as it was only five days later that a selection of NetEnt’s games is now live and available on TropicanaCasino.com, Tropicana Atlantic City’s online casino in the state of New Jersey, U.S.A. This came after a customer agreement was signed with Gamesys for the delivery of online casino games to Tropicana Atlantic City Online.
Not mentioned yet in the Q2 summary, it was halfway May that another dream came true for the player from London who became a dad just a few months before. The Londoner bet only £20 on the Mega Fortune™ slot via the LeoVegas mobile app winning an amazing £2,9 (€3.6) million jackpot.
End of May, NetEnt revealed some great news regarding the company’s expansion on regulkated markets in Europe, announcing it obtained class 2 licenses from the online gaming regulator in Romania. The licenses cover production and distribution of specialised gaming software as well as management and hosting facilities for online gaming.
NetEnt was nominated in an incredible nine categories and once the eGR B2B Awards night was there, world’s most popular software developer in iGaming left the party with three awards ruling the categories Innovation in mobile, RNG Casino Supplier, and Innovation in slot provision. In addition to its three award wins, NetEnt was also nominated in the following categories: Mobile supplier, Multi-Channel Supplier, Innovation in RNG casino software, Live casino supplier, and Mobile Gaming Software, Slot Provider.
NetEnt’s Q2 couldn’t end better as it was at the end of June the company signed a customer agreement with The Rank Group Plc, one of the largest gaming companies in Europe with a strong market presence in the UK, the largest online casino market in Europe. The agreement concerns the delivery of the NetEnt Games to the Grosvenor Casinos (grosvenorcasinos.com) and meccabingo.com with Grosvenor Casinos being the largest land-based casino operator in the UK while Mecca Bingo is one of the leading bingo operators in the country.
Last, but not least, Per Eriksson did mention Brexit in its comments and I can imagine that those involved in the iGaming industry, as well as players, start wondering what Brexit means for a company like NetEnt and the tens of NetEnt Casinos.
”Great Britain continues to be one of our most important markets, where we keep seeing strong growth. In June, we signed a license agreement with Rank Group, one of the largest gaming operators in Europe with a strong market position in the UK. It is difficult to assess how online gaming demand will be affected by Brexit going forward. In the short term, we see mainly currency effects as we invoice most of our UK customers in British pounds. However, since the UK referendum, weakness in the Swedish krona against the euro has compensated for the weaker pound.” said Per Eriksson President and CEO at NetEnt