Swedish developer of online casino content NetEnt AB had its busiest year, as it signed a number of strategic partnerships and launched new and exciting gaming titles for its B2B customers around the globe and their gambling customers, respectively. Quite expectedly, the hard work resulted in more than excellent financial performance.
The Swedish company posted record increases in both revenue and profits in the nine months ended September 30, 2015. NetEnt generated revenue of SEK809.3 million, up 32.5% from the SEK610.6 million posted for the same period a year ago. Operating profit increased 54.3% year-on-year to reach SEK279.8 million. Profit after tax amounted to SEK258.3 million, up 55.5% from the SEK166.1 million posted for the nine-months ended September 30, 2014.
Apart from creating new online casino content, NetEnt also focused its attention over the past year on expanding its presence not only in Europe but also in the United States. The company signed 30 different partnership agreements and its games went live in more than 20 online casinos operated by partners of the Swedish supplier.
It was in March 2014 when NetEnt announced a partnership agreement with online gambling platform supplier GameAccount Network, under the terms of which the Swedish company was enabled to offer its desktop and mobile games to several Italian gambling operators. In January, NetEnt announced that a selection of its most popular titles has gone live with Italian gambling companies SNAI and Sisal.
In February, a number of the Swedish supplier’s games went live with Full Tilt’s newly launched online casino offering. A few months later (May 2015), NetEnt announced that a selection of its most popular products has also gone live with PokerStars. Both Full Tilt and PokerStars are owned by Rational Group, a fully owned subsidiary of Canadian gambling giant Amaya Inc. The two brands are best known for their poker offering but launched new casino options in a bid to attract the attention of a completely different group of gambling customers. NetEnt’s games are now available on Full Tilt and PokerStars for players from a number of European countries.
In March, the Swedish gaming developer announced three strategic partnerships that helped it expand its presence in key European online gambling markets. First, NetEnt revealed a license agreement with UK-based gaming company Gamesys. Under the terms of the deal, the supplier provided the operator with a wide range of its best slot games.
Next, NetEnt signed a similar agreement with Danske Spil, known to be one of the world’s most prominent lottery operators. Danske Spil is owned by the Danish government and its partnership with NetEnt allowed it to opt for the Swedish company’s online casino offering. The online gaming content developer also penned a license agreement with Spanish gambling operator CODERE.
April was, too, quite an important month for NetEnt as it was granted software and operating licenses by the UK Gambling Commission. Those allowed the company to provide UK-based gambling operators with its services and products. In addition to this, NetEnt also launched a selection of its online casino titles with its partner bwin.party digital entertainment.
In May, the Swedish developer of gaming content announced its first key partnership in North America. NetEnt singed a cross-license agreement with IGT, which has been holding the largest portfolio of slots feature patents across the United States and the North American gambling market as a whole. Under the terms of the agreement, the gaming developer was enabled to offer its titles in North America, with those including any of IGT’s patented slots features.
June was also quite eventful for NetEnt. The company announced content agreements with three gambling operators that provide their services in the Spanish regulated online casino market – 888, Premiere Megaplex, and Paf. In addition, NetEnt signed its first customer agreements for the provision of its multi-channel casino games in the state of New Jersey. First it penned such a deal with bwin.party, which supports Borgata’s online casino brands. Then, NetEnt inked a similar agreement with Caesars Interactive Entertainment, the New Jersey-based online casino arm of gambling giant Caesars Entertainment Corp.
In July, the Swedish developer announced a partnership agreement with major UK gambling operator Gala Coral. Thus, NetEnt further strengthened its presence in two of the key regulated online gambling markets in Europe – the United Kingdom and Italy.
In August, the online casino supplier secured its further expansion in the New Jersey gambling market with a content agreement with land-based and online gambling operator Golden Nugget. Here it is important to note that at that time NetEnt was not able to launch its games with any of its New Jersey partners as it was waiting for transactional waivers from the state Division of Gaming Enforcement.
A transactional waiver was needed for each of its partnership agreements, while its application for a full casino license for the provision of online gambling content within New Jersey’s borders was under review by the local gambling regulator. In September, NetEnt received the first such transactional waiver and a selection of its most popular titles went live with the Borgata and bwin.party brands.
In October, the Swedish company announced a license agreement with Resorts Casino, yet another casino operator that provides both land-based and online casino options in New Jersey. Under the terms of the agreement, once granted a transactional waiver, NetEnt casino content would go live for both desktop and mobile with the online brands of Resorts Casino and its partner Mohegan Sun.
In November, a selection of the Swedish company’s content was launched with online gaming brands TropicanaCasino and VirginCasino, managed by Gamesys US and available to New Jersey-based gambling customers.
In December, NetEnt announced that its online casino titles were live with Caesars Interactive Entertainment and Golden Nugget’s Internet brands and could be played by New Jersey-based players. The Swedish company’s application for a full operational license within the state’s borders is still under review by the New Jersey Division of Gaming Enforcement.
Over the past year, NetEnt has repeatedly pointed out that it would keep on following its strategy to launch at least one gaming title every month and to expand its presence in key online gambling markets. With the numerous partnership agreements and the newly introduced online casino games, which have proved to be an instant success, the company said that it expects a record increase in both revenue and profit for the full year ending December 31, 2015.
