"2016 was another exciting year for NetEnt with new record levels in revenues, earnings and cash flow," says CEO
Swedish online gambling software and games developer NetEnt has posted its year-end and fourth quarter reports for 2016, with CEO Per Eriksson claiming another exciting year "…with new record levels in revenues, earnings and cash flow."
Eriksson notes that the fourth quarter developed well, with revenues up 23.9 percent and the operating margin improved to 39 percent.
"Great Britain continues to offer great growth potential for us and in December, it became our largest geographical market for the first time," Eriksson revealed. "Looking ahead in 2017, we see conditions for continued solid growth, supported by a strong pipeline of new games, UK, mobile, new customers to launch as well as our expansion in North America."
Q4-2016 highlights included:
* Revenues for the fourth quarter increased by 23.9 percent to SEK 400 (323) million;
* Operating profit amounted to SEK 156 (122) million, an increase of 28.1 percent;
* Operating margin was 39 (37.7) percent;
* Profit after tax was SEK 150 (116) million, an increase of 29.6 percent;
* Earnings per share amounted to SEK 0.62 (0.48) after dilution;
* 13 new customer agreements were signed, and 12 new customers' online casinos were launched.
Key events in Q4-2016 included:
* Retail deal signed with Gauselmann for gaming machines market in Italy;
* Retail agreement entered with Paddy Power for gaming machines in Great Britain;
* NetEnt games launched on the regulated markets in Bulgaria and Portugal;
* Contract signed with Codere regarding online games distribution in Mexico.
FY2016 highlights were:
* Revenues up y-o-y by 28.5 percent to SEK 1,455 (1,132) million;
* Operating profit of SEK 536 (402) million, an increase of 33.4 percent;
* Operating margin was 36.8 (35.5) percent;
* Profit after tax was SEK 504 (374) million, an increase of 34.9 percent;
* Earnings per share amounted to SEK 2.10 (1.56) after dilution;
* 45 new customer agreements were signed and 34 new customers' online casinos were launched;
* Proposed cash distribution to shareholders of SEK 2.25 (1.33) per share was declared;
* At the end of 2016, NetEnt had 31 signed customers that had not yet been launched.
CEO Eriksson said that 2016 had featured many new customers, new regulated market entries and successful game launches for NetEnt.
"During the year, we made several large investments — we continued to enhance our platform and developed a mobile solution for Live Casino Roulette, which we think will support future growth for us in this segment. The game trilogy NetEnt Rocks was very successful and Guns N' Roses was named best game of the year."
Erikson revealed that NetEnt managed almost 36 billion transactions through its systems in 2016, 19 times more than the total number of transactions on the New York Stock Exchange during the same period.
Looking forward, Eriksson said that he expects Q1-2017 revenues to be in line with Q4-2016, and for the remainder of 2017 he predicts continued solid growth supported by a strong pipeline of new games, growing market share in the UK, mobile growth, new customers to launch, and expansion in North America.
"We will increase the number of employees, enhance our product offering and integrate more customers on new regulated markets," he said. "With this in mind, we foresee higher costs and an ongoing need to invest during 2017. These are all projects that will enable continued solid growth for NetEnt going forward."
Online Casino News Courtesy of Infopowa