NetEnt surfs a wave of profits!
Friday, 15 Feb, 2013
With a revenue increase of 19.5% during the fourth quarter of 2012, NetEnt once more confirmed their status as one of the most successful gaming software providers in the world.
Again, Net Entertainment reached a new sales record during the quarter
, said Per Eriksson, president and CEO of NetEnt. New record sales represent a total of 144.7 million SEK as well as the growth of the company’s licensee agreements and new online casinos launched before the end of 2012.
Some highlights of the Q4 results show:
- -A 19.5% revenue increase;
- -An operating profit of 37.2 million SEK;
- -25.7% operating margin;
- -31.1 million SEK in profits after taxes;
- -Payouts to shareholders in 2012 amounted to 2.25 SEK per share.
The report emphasized some major accomplishments from the last quarter, specifically the fact that NetEnt and UK based bookmaker Paddy Power successfully developed the Boylesports betting site for the British market. During this period, the company also delivered their video slot game portfolio to Italian operators, thus making NetEnt one of the top casino content suppliers for this new regulated market.
Per Eriksson commented on the report after it had been released on February 14th:
Among other things, we launched Live Casino, signed agreements with several tier one customers and launched slot games on the Italian market. We will continue with significant initiatives in systems, products and the organization.
During 2012, NetEnt reinforced its gaming niche by entering the Italian, Spanish and Danish markets. The company is now expecting to penetrate the US gambling segment once the new legislation is approved. They will focus on the Virgin Islands, New Jersey and California, all of which are still pending the approval of their respective gaming bills.
Furthermore, the outstanding Q4 revenues are also the result of the Mega Fortune jackpot, which reached a total of €17.8 million, a Guinness World Record set by a Finnish player in January of 2013.
The new trend of mobile casinos:
NetEnt saw its mobile casino Gross Gaming Yields (GGY) increase by 37% every month of 2012! The company CEO said that they had started out with ten mobile games and by the end of 2013 NetEnt was expecting to launch up to 40 games. Per Eriksson also said, Mobile games have proved to be a successful initiative and the demand from the market continues to be high.
The competition is getting tough for gaming developers now that there are new regulated markets within the EU and soon in the US. According to Per Eriksson:
NetEnt will continue to make significant investments in systems, products and the organisation. Sales activities will continue to be focused towards operators in the UK but also towards existing customers for mobile games and Live Casino.
