NetEnt publishes Q2 Interim Report 2017
Another three months have passed since NetEnt’s last Interim Report which showed revenues increasing with 15.2% up to SEK 398 million (€345 million). The Interim Report published yesterday, concerning the second quarter of 2017, shows an increase of revenues of 15.5% to SEK 407 (€352) million showing another successful quarter for the company with mobile gaming accounting for more than half of NetEnt’s revenues in June. Highlights for the company included the launch of the reality TV-style series The Challenge; the company obtaining a license as supplier in British Columbia, Canada; NetEnt Games going live in Serbia while the NetEnt’s Spanish game portfolio was extended with table games.
Per Eriksson, President and CEO comments: ”The quarter featured continued solid growth, higher profitability and a strong cash flow. The most important growth drivers were mobile games, Great Britain and Italy. During June, mobile games contributed more than half of our revenues while Britain was our largest geographic market for the quarter. For the second half of 2017, we see conditions for continued solid growth.”
Numbers and facts Q2 NetEnt 2017
I think that the most significant fact in NetEnt’s Q2 Interim Report involves the mobile gaming segment. Mobile gaming has been of big importance for the company in the past years, but for the first time, this particular product accounted for half of NetEnt’s revenues. The growth of the mobile gaming industry doesn’t show any signs of slowing down which will probably result in mobile games becoming more popular than the desktop in the near future.
NetEnt’s revenues increased by 15.5% and the operating profit increased by 18.5% compared to the same quarter last year. However, revenues for the second quarter in 2016 increased by 29.8% and the operating profit by 32.1%. A decrease which was already predicted by NetEnt as a result of investments done in the past year to improve services and to stay ahead of the competition.
The number of gaming transactions in NetEnt’s games amounted 9.8 billion in the first quarter of 2017. The number of gaming transactions in their systems in Q2 2017 amounted to 10.1 billion during the quarter, corresponding to an increase of 14.4 percent compared to the second quarter of last year.
Between 1st April and 30th June, NetEnt signed agreements with six new customers and launched the NetEnt Games with eight new customers. A slight decrease compared to the same quarter in 2016 in which 12 new customer agreements were signed and six new customers’ casinos were launched.
Before I continue with some of the highlights of the second quarter, I would like to emphasise a few facts from the Interim Report that are interesting for NetEnt, as well as the industry in general.
Great Britain and Italy contributed the most to NetEnt’s growth in the second quarter. Overall, Great Britain was their largest market during Q2 and the company continues to see great potential for market share gains in the coming years as NetEnt is working even harder to expand in this market.
NetEnt also continues to see fast growth in regulated markets such as Denmark, Belgium, Spain, and New Jersey.
In the US, NetEnt’s operations in New Jersey continue at full speed while the company closely monitors developments in other states that could potentially open up such as Pennsylvania and Illinois.
The future outlook remains bright and for the remainder of 2017 and NetEnt sees conditions for continued solid growth supported by new casino games, increasing market shares in the UK, mobile growth, many new customers to launch and the company’s expansion in North America.
NetEnt’s highlights second quarter 2017
While the company released four new games in Q2 including Hansel and Gretel™, Copy Cats™, Butterfly Staxx™, and Scruffy Duck™, the company keeps on expanding in regulated markets and winning award after award. An event that must be mentioned as well is the payout of an incredible €16.3 million in Mega Jackpots within a period of 5 weeks.
- NetEnt games went live with Tropicana in New Jersey
- Gaming licenses obtained in Romania
- Customer agreement signed with Rank Group
- NetEnt won prestigious awards at the eGR B2B Awards