Updating the market, Stockholm-listed NetEnt AB declared a strong opening performance to its 2016, with the games developer recording top-line growth on all core metrics.
NetEnt would announce Q1 2016 revenues of SEK 345 million (£31 million) up 33% on 2015’s corresponding SEK 258 million.
Detailing its revenue growth, NetEnt governance noted that 2016 had seen a substantial increase in casino players engaging with NetEnt games on client platforms. The games developer would detail Q1 user transactions with its content were at €8.9 billion for Q1 2016.
Increased player engagement would transfer to positive earnings results, with NetEnt recording an uplift in operating profits to SEK 128 million/£11 million up 56% on Q1 2015’s SEK 82 million.
NetEnt governance detailed that the firm had managed to strengthen its sales pipeline with nine new licensing agreements gained and with NetEnt further adding eight new content clients to its book during the period.
Following a strong opening to its 2016, NetEnt governance declared that was positive of hitting all yearly targets with the company gaining membership to the World Lottery Association (WLA).
Per Eriksson, President and CEO commented on Q1 2016 performance:
“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. We have an exciting year ahead of us and I am positive about the future.”
“We have had a strong start to the year with high growth in revenues, profits and cash flow. Revenues for the first quarter increased by 33.7 percent and operating profit increased by 56.6 percent, compared to the first quarter of last year. The operating margin was 37.1 percent, a significant improvement from the same period last year thanks to rising revenues and economies of scale. The number of gaming transactions was 8.9 billion in the first quarter, representing an increase of 37 percent compared to the previous year.”