NetEnt publishes Q3 Interim Report 2016
It was recent that that NetEnt published its Q3 Interim report together with some positive updates and highlights. Revenues for the third quarter increased by 27.7% to SEK 357.4 (€279.8) million while 11 new customer agreements were signed. Many highlights took place these three months with the NetEnt Games being launched with Rank Group in the UK and with several operators in Romania after NetEnt was granted a casino license in Romania in Q2. For me personally, I think NetEnt’s new live casino product for mobile was a true highlight.
As usually, NetEnt did very well in the past months, hence it was able to publish another positive interim report with promising numbers. Revenues for the third quarter increased by 27.7% to SEK 357.4 (€279.8) million and with 30.3% to SEK 1,054.8 (€809.3) million in Q1-Q3. Operating profit in Q1-Q3 amounted to SEK 380.0 (€279.8) million, an incredible increase of 35.8% compared to the same period in 2015.
NetEnt signed up 11 new customers between 1st July and 30th September, but a total of 32 new customers have been welcomed in 2016 so far. Signed up in 2016 or before, 22 new customers’ casinos were launched in 2016 with the total number of NetEnt Casinos growing fast.
”NetEnt’s growth strategy keeps delivering results. We grow on new markets, with new products and with more customers. During the quarter we launched our games on the regulated market in Romania and we rolled out our live casino product for mobile. The UK continues to be an important growth driver but the weaker pound had an estimated negative effect of about three percentage points on revenue growth compared to the same quarter last year. Our ambition to achieve continued strong sales growth in 2016 remains,” says Per Eriksson, President and CEO at NetEnt.
NetEnt’s highlights in 2016
It has been an incredible year so far with fantastic new games being launched, including the NetEnt Rocks Trilogy and NetEnt Live. Many new customers were welcomed while the NetEnt Games were launched at the many new NetEnt Casinos as well.
- NetEnt had an incredible start of the year 2016 with the launch of Guns ‘N Roses™ online slot, the first part of the NetEnt Rocks Trilogy.
- NetEnt became 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.
- The company signed an agreement with PokerStars in New Jersey and shortly after the NetEnt Games were launched at the well-known gambling site becoming available to New Jersey players only.
- 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.
- In April, NetEnt unleashed the much-anticipated Jimi Hendrix™ online slot, the second leg in their groundbreaking NetEnt Rocks Trilogy.
- At the end of April, NetEnt’s high-quality games went live with TropicanaCasino.com, Tropicana Atlantic City’s online casino in the state of New Jersey, U.S.. This came after a customer agreement was signed with Gamesys for the delivery of online casino games to Tropicana Atlantic City Online.
- End of May, NetEnt obtained casino licenses from the online gaming regulator in Romania, great news regarding the company’s expansion on regulated markets in Europe. The casino licenses cover production and distribution of specialised gaming software as well as management and hosting facilities for online gaming.
- Nominated in an impressive nine(!) categories for the eGR B2B Awards, NetEnt left the party with three awards ruling the categories Innovation in mobile, RNG Casino Supplier, and Innovation in slot provision.
- NetEnt 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. It involves the delivery of the NetEnt Games to the Grosvenor Casinos (grosvenorcasinos.com) and meccabingo.com.
NetEnt’s successes during Q3 2016
After NetEnt signed a license agreement with the Rank Group at the end of Q2, it was in August that a selection of NetEnt Games went live in Rank Group’s online casino network.
Halfway the third quarter, NetEnt added another trailblazing product to its offering with the launch of NetEnt Live Mobile. NetEnt Live Mobile offers the latest technology in streaming, sound and video, the closest a mobile player can get to a real-life casino experience. Although I know what NetEnt is capable of, I was still amazed by this latest innovative product that really enhances the player’s live casino experience. The same goes for the way that operators use live casino. A great event considering the fact that revenues from mobile increased by 83 percent compared to last year and accounted for 40 percent of revenues in Q3.
As you can read in the above overview, NetEnt obtained a gaming license from the regulator in Romania. End of September, after successful integrations, NetEnt’s games went live with several customers on the regulated market in Romania.
Following the successful video slot releases of Guns N Roses™ and Jimi Hendrix™ earlier this year, NetEnt launched the third slot in the NetEnt Rocks Trilogy on 22nd September, the day Motörhead™ online slot became available at the many NetEnt Casinos.
With so many highlights, I would almost forget to mention other new NetEnt slots launched in Q3. July was the month that the fun and colorful When Pigs Fly™ slot was delivered to the NetEnt Casinos. Maybe not as recognisable as Motörhead™, I do believe that many of you will feel slightly nostalgic as this new NetEnt slot is inspired by popular cartoons from the 90’s.
History-themed, you’ll be submerged in a video slot telling the story of a mysterious island that kept people busy for thousands of years. NetEnt certainly keeps on surprising with original themes and spectacular designs. Q4 definitely promises to bring some more slot fun with titles such as Warlords: Crystals of Power™ (24th November), and Secrets of Christmas™ (30th November) while Fairytale Legends: Red Riding Hood™ was already delivered to the NetEnt Casinos on the 24th of October. It seems NetEnt is in a nostalgic mood this year!