UK becomes largest geographical market for the first time in December
As anticipated NetEnt delivered another robust set of results for the full year 2016 period with a series of all time highs in terms of revenues, earnings and cash flow.
Key performance highlights for the 12 month period ending December 31, 2016 include:
– Revenues for the full year increased by 28.5 percent to reach SEK 1,455 million (2015: SEK 1,132 million).
– Operating profit reached SEK 536 million (2015: SEK 402 million), up 33.4 percent.
– Operating margin was 36.8 percent (2015: 35.5 percent).
– Profit after tax amounted to SEK 504 million (2015: SEK 374 million), an increase of 34.9 percent.
– Earnings per share amounted to SEK 2.10 (2015: SEK 1.56) after dilution
– Proposed cash distribution to shareholders of SEK 2.25 (1.33) per share
NetEnt revealed it had signed 45 new customer agreements, launched thirty-four new customers’ casinos, and had 31 signed customers yet to be launched at the end of 2016.
“2016 was another exciting year for NetEnt with new record levels in revenues, earnings and cash flow. The year featured many new customers, new regulated market entries and successful game launches for NetEnt,” Per Eriksson, President and CEO of NetEnt, commented in a press statement.
“For the first quarter of 2017, we expect revenues to be in line with the fourth quarter of 2016. For the rest of 2017, we see conditions for continued solid growth supported by a strong pipeline of new games, growing market shares in the UK, mobile growth, new customers to launch, as well as our expansion in North America”.
Eriksson expects higher costs and an ongoing need for investment during 2017 as the company seeks to increase its staff, enhance its product offering and integrate more customers in newly regulated markets.