Swedish developer and supplier of products specifically intended for the iGaming industry NetEnt today posted its financial results for the three months ended September 30, 2016. The company reported yet another robust quarter with key performance indicators growing substantially.
Revenue for the reviewed period totaled SEK357.4 million, representing a 22.7% increase from the same three months of the previous year. Operating profit amounted to SEK129.4 million, up 22.9% from the SEK105.3 million generated during the third quarter of 2015. Operating margin stood at 36.2%. Profit after tax rose 22.2% year-on-year to SEK119.2 million.
For the nine months ended September 30, 2016, NetEnt generated revenue of SEK1.1 billion, up 30.3% year-on-year from SEK809.3 million posted for the prior-year period. Operating profit totaled SEK380 million, reflecting a rise of 35.8% year-on-year. Operating margin stood at 36% for the first three quarters of 2016. Profit after tax was up 37.2% year-on-year to reach SEK354.5 million.
During the third quarter of the year, NetEnt maintained its focus on expanding into regulated markets and further establishing itself in regulated jurisdictions it has previously introduced its offering to. The company launched its online casino games with several operators in the Romanian iGaming market.
NetEnt also hailed its performance in the Spanish market. The supplier has been providing more than ten operators running gambling operations in the local market with its offering. The Swedish company said that it has started bearing fruit from its collaboration with Spain-facing operators and this has been reflected in its financial results.
NetEnt also pointed out that the UK has remained one of its core markets in the third quarter. However, the weaker pound had a slightly negative effect on its overall financial performance. The supplier pointed out that it has continued growing its share in New Jersey’s iGaming market. With Pennsylvanian legislators discussing the potential legalization of online gaming options in the state, NetEnt also expressed entering that market, as well.
As the company itself said in its quarterly report, it plans to enter the Canadian market by applying for a license in British Columbia in the last quarter of 2016. NetEnt games had previously been available to Canada-based players but the provider decided to leave the market, following the lead of other major operators and suppliers. In June, the Swedish company pulled out its online casino games from three Canada-facing gaming brands, with those being Guts Casino, Rizk Casino, and Betspin Casino.
Mobile growth was another operational highlight NetEnt paid special attention to in its latest quarterly report. The company said that mobile revenue grew 83% year-on-year in the third quarter of 2016. What is more, it represented 40% of the overall revenue generated during the period.
Towards the end of the quarter, NetEnt launched its NetEnt Live Mobile product that allowed for players to play live casino games on their hand-held devices. The company has pointed out multiple times that the mobile segment is one it will keep on putting substantial investments into.
Last but not least, NetEnt signed 11 new client agreements during the three months ended September 30, 2016 and 8 of its customers have launched the supplier’s games at their online casinos.
As for its plans for the remainder of the year, NetEnt will keep on adapting its operations to regulated jurisdictions and investing in key areas of focus in order to achieve “continued strong sales growth.”
