Swedish online gaming developer and supplier NetEnt hailed another quarter and full year of increase in key performance indicators. The growth was attributed to the company’s strong performance in the mobile gaming sector, its expansion across new regulated markets, and the strength of its presence in the UK iGaming market, in particular.
NetEnt uploaded today information about its financial results for the quarter and the year ended December 31, 2016. Quarterly revenue increased nearly 24% year-on-year to reach SEK400 million. Operating profit for that same period amounted to SEK156 million, up 28.1% from a year earlier. Operating margin stood at 39%. Profit after tax totaled SEK150 million, reflecting a 29.6% rise from the same three months of 2016.
Full-year revenue jumped 28.5% from 2015 to reach SEK1.5 billion. Operating profit increased 33.4% to a total of SEK536 million, with operating margin standing at 36.8%. Profit after tax soared almost 35% to SEK504 million.
As mentioned above, NetEnt was particularly happy with its mobile gaming operations. The rapidly growing vertical was an important revenue booster. During the fourth quarter of 2016, NetEnt’s mobile products generated 43% of its overall revenue.
Expansion into new regulated markets was another important part of NetEnt’s growth strategy for 2016. The company entered the newly regulated markets of Portugal, Romania, and Bulgaria, and secured entrance into the Mexican iGaming market through an extension of its existing partnership with Spanish gambling operator Codere.
Over the course of 2016, NetEnt locked 45 content supply deals with international operators. The company launched its online casino content with 34 clients last year.
The UK was a key market for the supplier. NetEnt noted that its expansion push into that particular jurisdiction has resulted in it turning into the Swedish company’s largest market. A recent report by the UK Gambling Commission showed that online gaming has grown into the nation’s largest gambling sector, with gross gambling yield of £4.5 billion being generated in the period between April 2015 and March 2016 from iGaming offering.
NetEnt was off to a good start of 2017, as noted in its full-year report from today. The company expects further positive growth and is set to put additional investment into the development of new products. During this year’s edition of the ICE Totally Gaming show, NetEnt revealed that it will venture into VR by releasing a VR adapted version of its Gonzo’s Quest online slot.
