Governance of Stockholm-listed NetEnt AB (NetEnt) are positive of meeting all 2016 corporate expectations, following the closure of a successful Q2 2016, in-which the company published operating profits of SEK 122 million (£11 million), up 32% on Q2 2015’s SEK 92 million.
Boosted by securing twelve new customer agreements during the period, NetEnt saw its Q2 corporate revenues reach SEK 352 million (£32 million) (Q2 2015: SEK 271 million). The company detailed that it had maintained its strong operating margin of 35%
Presenting its interim results for H1 2016, NetEnt would post corporate revenues of SEK 697 million (up 31% on H1 2015: SEK 529 million) combined with operating profits of SEK 250 million (£22 million), representing an increase of 43% on H1 2015’s SEK 174 million.
NetEnt governance stated that it the company’s strong commercial pipeline and relationship with top tier European betting operators had helped the company maximise its profits, with NetEnt gaming services recording + SEK 8 billion in transactions during the Q2 2015.
The company detailed that it had added a further tier 1 gambling operator in Rank Group, who had signed a customer agreement during the period, which would provide a boost for its future revenues.
Commenting on Q2 and H1 2016 performance Per Eriksson President & CEO of NetEnt AB stated:
“NetEnt continues to drive the digital casino market with innovative, cutting-edge gaming solutions and entertaining games that are best-in-class. In yet another sign of appreciation, we won several prestigious trophies at the eGR B2B Awards in London – in the categories Innovation in Mobile, RNG Casino Supplier and Innovation in Slot Provision. Mobile live casino is an innovative product that we have recently started to launch in a beta version with some of our customers, and it has been very well received by both operators and players. Mobile gaming continues to be an important growth driver for us. Revenues from mobile doubled compared to the same period last year and accounted for 37 percent of revenues in the second quarter.”
“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.”
NetEnt AB Q2+H1 2016 Performance Overview