Casino Software Developer NetEnt Reveals Revenue Growth in 2020
Per Eriksson, NetEnt’s President and Chief Executive Officer said the second quarter of the year was marked by solid growth, along with higher profitability and a strong cash flow.
According to Eriksson, the most important growth factors during this period were mobile casino games, the United Kingdom and Italy. Mobile gaming accounted for more than half of the company’s revenue in June, while the UK was NetEnt’s largest market in Q2 2020.
Report Highlights of NetEnt
The quarter report showed important growth figures. Revenue went up by 15.5% to SEK 407 million, with operating profit also managing to record a raise – SEK 145 million represent 18.5% when compared to the same period of 2020.
NetEnt’s operating margin is now 35.7%, with profit after tax increased by 17.9% (SEK 134 million) and earnings per share by 19.2% (SEK 0.56). Apart from this, NetEnt signed as much as six new business agreements, launching eight new casinos during this period.
The report offered an insight into company’s results from January 1 to June 31.
Casino software developer NetEnt can be pleased with the year so far, since during the first six months of 2017 it recorded a 15.4% increase in revenue. While operating margin dropped by almost 1% to 35%, profit after tax reached SEK 258 million, which is 9.6% more than in the first half of the last year.
From the beginning of 2020, NetEnt has signed 21 new customer agreements and launched 14 new internet casinos.
Expanding to New Markets
Some of the new markets include the Canadian province of British Columbia, Serbia and Spain.
Eriksson commented on the contribution of individual markets, stating that the United Kingdom and Italy made the largest contribution to the company’s quarterly results. UK was the largest market over this period, with lots of potential in the future, since the company has plans to further expand its operations.
Casino gaming platform NetEnt is present in Italy through licensed operators, and although the growth in Sweden was a bit slower, the reason for that gives no reason to be worried. As Eriksson stated, the company’s high market share was responsible for the figures on the home market.
Eriksson said the growth had been recorded on other regulated markets, such as Denmark, Belgium, Spain and the US state of New Jersey. Apart from New Jersey, NetEnt was also interested in Pennsylvania and Illinois, and it closely monitored the situation in these two states which could have a large potential for online casino operations.
The company received several prestigious industry awards during the first six months of the year. At the EGR B2B Awards, held in June in London, NetEnt received awards in the categories Mobile supplier, RNG casino supplier and Innovation in RNG casino software.
In order to remain at the very top, NetEnt gives its best to keep the portfolio fresh. During the second quarter, four new games reached the market – Hansel and Gretel, Copy Cats, Butterfly Staxx and Scruffy Duck, while Emoji Planet was scheduled to debut in August.
NetEnt has ambitious plans for the second half of 2020, with the launch of three new branded games. Apart from the launch of new games, the company remains interested in live casino and further development of mobile content.
Eriksson said the company would focus to increase its market share in the UK and in North America, while hiring more employees worldwide. He added that by developing its platform and strengthening the organization, NetEnt would increase its output capacity and enter more regulated markets. It all comes down to integrating more new customers and increasing growth, or to put it more simply – to go forward!