NetEnt Posts Its Financial Results for Q4 and FY 2018
Swedish developer of online gaming content, NetEnt, has announced the results for the last quarter of the year, as well as for the entire 2018, revealing the Scandinavian giant has recorded the increase in revenue in several important verticals.
According to the available information, NetEnt generated $49.9 million in revenue for the fourth quarter of 2018, which represents an increase of 9.5% when compared to the corresponding period of 2017.
Six newly launched games by NetEnt were the main driving force behind these figures.
An Exciting Fourth Quarter
Speaking about the latest financials, Therese Hillman, who was appointed the company’s Chief Executive Officer in May last year, said the adjusted EBIT margin had improved to 37.3 per cent, supported by higher volumes, the weaker Swedish currency, and better cost control.
She also stated she was looking forward to another busy year as NetEnt continued to strive for higher organic growth with maintained cost control. Hillman also added that she was looking forward to another busy year.
At the same time, earnings before interest, taxes, depreciation, and amortization (EBITDA) reached $21.9 million, which is an improvement of 5.2% over Q4 2017. The corresponding margin was at 43.9%. The company’s costs related to reorganisation came in at $2.4 million, which brings EBITDA to $24.3 million for a margin of 48.7%.
Operating profit during the quarter reached $15.7 million, with the corresponding margin being at 31.4%
Other figures tell the full story. Profit after tax is at $14.7 million while earnings per share dropped to $0.06 before and after dilution. In addition to this, the renowned gaming company ended the three-month period with 8 new customer agreements and 9 new casinos going live.
It was revealed that locally regulated markets accounted for 37% of the company’s overall revenues in the fourth quarter. This number jumps to more than 50% if the newly re-regulated market in Sweden is included.
A number of important events marked this period, including new customer contracts signed with ATG and Svenska Spel in Sweden, and Veikkaus in Finland, while NetEnt successfully expanded its operation in the United States by partnering with Churchill Downs in New Jersey and Penn National in Pennsylvania. In addition to this, the company also inked a new Live Casino contract with William Hill.
During the quarter, NetEnt completed its reorganisation, whose aim was to increase profitability and competitiveness, while Lars Johansson was appointed Chief Financial Officer (CFO).
The Full-Year Results
When it comes to the whole year, NetEnt generated $191.2 million in revenue, an improvement of 8.9% when compared to 2017. EBITDA reached $87.6 million, for a corresponding margin of 45.8%.
EBIT was at $64.5 million, with a margin of 33.7%, while profit after tax was $61.96 million, with earnings per share at $0.26 before and after dilution. For the full-year, the proposed cash return to shareholders will be at the rate of $0.24 per share.
During the twelve-month period ending on December 31, 2018, NetEnt signed a total of 31 new customer agreements, while 38 new casinos hit the market.