NetEnt sees record quarter opening to 2015

Igaming games developer NetEnt has reported its strongest ever interim quarter performance, as the Malta based content developer recorded a Q1 2015 revenue increase of SEK 258 million (£19.6 million) up 37% on Q1 2014 SEK188.4 million.

Reporting performance increases on all top line metrics for the period ending 31 March, NetEnt’s increased revenues positively transferred to company operating profit which amounted to SEK 81.8 million (£6.3 million) up 59% on Q1 2014 SEK 51 million. NetEnt would announce an operating margin of 31.7% for the period (Q1 2014: 27.2%)

Profit after tax amounted to SEK 74.2 million (£5.7 million) representing an increase of 60.9% on Q1 SEK 46.1 million.

NetEnt governance stated that its positive performance had been driven by increased activity which had seen 6.5 billion transactions on its published games content. NetEnt had further seen an increased uptake in its mobile games content which accounted for 20.6% of total game revenues during the period. The games developer stated that it had seen improved uptake of content in the UK and Italian casino markets.

Netent was further able to bring on board new licenses agreements extending its content coverage in Europe with partnership with Dankse Spill (Denmark), UK (Gamesys) and Grupo Codere (Spain).

PER ERIKSSON, PRESIDENT AND CEO commented on Q1 2015 performance

“We have made a very strong start to 2015, reaching new record levels for both revenues and profits. Our innovative gaming solutions as well as our strong expansion on new and existing markets are among the reasons for the high growth and good profits.

We are constantly developing our offering to be at the forefront in terms of technology, innovation and quality. In surveys with customers we can see that they also consider NetEnt to be at the cutting-edge and that we have the best reputation in the industry. As of the second quarter of 2015 all newly released games – for both desktop and mobile – will have been developed in in HTML5, which is expected to bring some synergies going forward. In the first quarter we increased our portfolio of world-class games with the release of Spiñata Grande, Steam Tower and Tornado Farm Escape. We also announced a new and exciting project with Universal, in which we will develop a video slot game based on the music of the iconic rock band Guns N’ Roses. In February we won the awards for Slots Provider/Supplier Product of the Year for both online and land-based at the International Gaming Awards in London.

I look forward to the rest of 2015. We have strong momentum – our customer offering is world-leading and we are well prepared to seize new business opportunities on the growing digital casino market.”