NetEnt Publishes the Latest Report, Reveals Q1 Figures
The leading developer of online casino content, NetEnt, has posted the latest financial results for the first three months of this year, revealing the beginning of the year has been an interesting period for the renowned developer.
The figures which have been made public, offer deeper insights into the operations of one of the industry’s biggest names.
Here Are the Numbers
Commenting on the latest numbers, NetEnt Group Chief Executive Therese Hillman said that in the first quarter the company had continued to focus on improvements throughout the organization.
Hillman, who was appointed new Group CEO in May last year, stated the operating margin was 30.2% but stressed it was difficult to predict the long-term market dynamics. She did point out that with new investments in games, live casino, new functionality for customers and players, as well as a strong balance sheet, NetEnt was in a good position to defend and, longer-term, increase its market shares.
It was also revealed that the company generated $43.7 million in revenue during the three-month period ending on March 31, with earnings before interest, taxes, depreciation and amortization (EBITDA) of $20.5 million representing a margin of 47%.
In the meantime, NetEnt’s operating profit reached $13.2 million, with a margin of 30.2%. At the same time, net profit during this period reached $12.5 million.
The company has also announced the overall earnings per share dropped to 5 cents before and after dilution.
Key Events of the First Quarter
NetEnt also revealed the company signed 8 new customer agreements during the first three months of 2019 while launching 9 new customer casinos.
One of the most important events of the quarter was the signing of a new customer contract with Parx Casino in Pennsylvania, while the developer’s presence in the US will be further increased with the latest authorization to offer its games in this state, and, of course, the new permanent licensing deal in New Jersey.
In addition to this, NetEnt has launched a total of five new video slots, including Turn Your Fortune, Strolling Staxx, Golden Grimoire, Scudamore’s Super Stakes and Temple of Nudges, while securing rights for new branded slots Conan and Ozzy Osbourne, as well as revealing the new live casino product titled Perfect Blackjack.
The conclusion of the first quarter is a perfect opportunity to see the result the company had in the recently re-regulated market in Sweden. According to available information, NetEnt saw its Q1 revenues drop by 2.8% when compared to the corresponding period of 2018. These numbers were attributed to disruptions in the local markets, mainly due to lower volumes in Sweden as the new regulation was introduced at the start of the year.
Speaking about the future plans, Hillman said that the company was getting ready to offer its games to customers in Finland through the state-owned operator Veikkaus while increasing its presence in Norway thanks to a deal with Norsk Tipping.
Hillman emphasized the growth potential New Jersey had for the company, while also pointing out huge growth benefits of the Nordic markets.