Swedish supplier of a wide range of products for the gambling industry announced its financial results for the fourth quarter of 2015 as well as for the year as a whole. Quarterly revenue was up 34% to SEK323.1 million. Annual revenue amounted to SEK1.1 billion, up 33% from the SEK851.7 million posted for 2014.
During the fourth quarter of the year the company generated operating profit of SEK121.8 million, up 51.6% as compared to the figures reported for the same period a year ago. Operating margin stood at 37.7% compared with 33.3% in the prior-year period. Profit after tax totaled SEK115.7 million, representing an increase of 50%.
In the three months ended December 31, 2015, NetEnt penned 14 new license agreements and 16 of its customers launched their new casinos. During the quarter, the company saw some of its clients in New Jersey go live with its games. In addition, Gala Coral launched NetEnt games in the UK, and Codere went live with those in Spain.
NetEnt also reported a record full-year revenue increase. Revenue of SEK1.1 billion was generated last year. Operating profit was up 53.5% year-on-year to reach SEK401.6 million. Operating margin was 35.5% in 2015 versus operating margin of 30.7% posted for the previous year. Profit after tax totaled SEK374 million, up 53.8%. In 2015, the Swedish company reached the impressive number of 43 new license agreements and 37 of its customers launched their new casinos, featuring NetEnt games.
President and CEO Per Eriksson described 2015 as a “fantastic year” for his company, with the constantly growing demand for online casino entertainment and for NetEnt product offering helping the supplier post record levels in its key performance indicators.
During the fourth quarter of 2015, the company saw game transactions go up 34.4% to a total of 8.2 billion. With that said, NetEnt handled as many as 27.7 billion game transactions in the twelve months ended December 31, 2015.
Mr. Eriksson further noted that last year, NetEnt’s UK market as well as mobile games were particularly important drivers of revenue growth. For instance, quarterly revenue from the UK market more than doubled as compared to the prior-year period. As for revenue from mobile, it increased more than 144% in the fourth quarter of the year and accounted for 30% of the overall gamewin reported for the period.
On their plans for 2016, Mr. Eriksson said that they will continue focusing on the development of “premium digital casino solutions” that would enable customers to achieve success.
