NetEnt Posts Strong Q1 2018 Results
The Swedish online games developer NetEnt has published its Q1 Interim Report, revealing strong results during the three-month period ending on March 31, 2018.
The year’s first quarter marked the beginning of a new expansion strategy focused on growth, whose implementation began in March.
Numbers Going Up
According to available information, Q1 revenue recorded a year-on-year increase of 9.4% to $44.5 million, with operating profit going up by 5.5% to $15.2 million. The operating margin stood at 31.2%.
The quarter operating profit includes around $680,000 in severance pay for the company’s previous Chief Executive Officer, which means the adjusted operating profit is $15.9 million, with the corresponding margin at 32.5%.
Other important factors include profit after tax of $16.6 million (increased by 26.9%) and earnings per share of $0.07 before and after dilution.
The company has also mentioned several important milestones during the quarter, which include the signing of 6 new agreements and launch of 8 brand-new casinos.
Expanding to New Markets
After signing a new deal with Caliente in Mexico, NetEnt made five new games available for players in this Latin American country. The list of new releases includes such popular video slots as Phantom’s Curse, Asgardian Stones, and Hotline. In addition to this, Q1 marked the launch of Live Beyond Live with Mr Green.
Per Eriksson left the company, while Therese Hillman has been appointed as acting Chief Executive Officer.
Commenting on the future plans, Hillman revealed the company had made a decision to apply for Pennsylvania license, thus effectively entering North American market. Apart from the United States, NetEnt plans to increase its presence in Canada by launching its games with the British Columbia Lottery Corporation (BCLC).
No doubt there will be more good news when NetEnt is in question. With a new director and a daring strategy, we can expect even better results in the remaining three quarters of 2018.