NetEnt posts 50% profit leap
Stockholm-listed supplier share price jumps after bumper Q1 results across the board
NetEnt generated operating profits of ?11m in Q1, a 57% year-on-year increase, the online casino provider reported this morning.
First quarter revenues were also on the rise, up 34% compared to the same period last year to ?30m, with a healthy operating margin of 37%.
The Stockholm-listed firm enjoyed continued growth in the UK, with revenues almost doubling, while game win from mobile devices reached a third of the overall Q1 total, up from 21% last year.
“We have had a strong start to the year with high growth in revenues, profits and cash flow,” Per Eriksson, NetEnt CEO, said.
“In January we released the slot game Guns N Roses, which became our most successful game release so far. We have an exciting year ahead of us and I am positive about the future.”
During the quarter the firm also won a ?7.5m tax battle with the Swedish Tax Agency and signed nine new licence agreements, including BetBright, Matchbook and Sporting Index.
Eriksson also highlighted plans for continued growth in North America, where the supplier went live with games on the PokerStars site in March.
“We have now successfully signed up all gaming operators in New Jersey and have quickly gained market share and traction with our games there, which is good for our future growth not only in New Jersey, but also in other US states if and when they decide to reregulate the online gaming market,” Eriksson added.
He also suggested that NetEnt was trying to improve its relationships with lottery operators following its recent entrance into World Lottery Association (WLA).
Early trading saw NetEnt shares up 7.3% at the time of writing.