Swedish supplier of online gaming solutions for the international online gambling industry NetEnt announced today its financial results for the first quarter of the year. The company generated quarterly revenue of SEK345.4 million, up 33.7% from the SEK258.3 million reported for the same three-month period of 2015.
Operating profit increased 56.6% year-on-year to reach SEK128.1 million. Operating margin was 37.1% for the period in review compared to 31.7% reported for the first quarter of 2015. The increase was attributed to the growth in revenue as well as to economies of scale. The amount of SEK121.7 million was generated in profit after tax, up 64.1% from the quarter ended March 31, 2015.
During the first quarter of 2016, NetEnt also saw the number of gaming transactions rise 37% year-on-year to 8.9 billion.
The Swedish company pointed out that mobile games as well as its presence in the UK regulated online gaming market contributed quite a lot to its overall growth during the quarter ended March 31, 2016. Gamewin from mobile games accounted for 33% of the overall figure posted for the period in review, representing a considerable increase from 21% for the same period of the previous year. As for the UK market, revenue from NetEnt’s operations there more than doubled during the first quarter of the year.
During the first three months of 2016, the popular Swedish supplier inked 9 new license agreements with international gaming companies and launched 8 new casinos for clients. The company also pointed out that they extended their existing partnership with PokerStars by going live with its games on the online poker room’s site in New Jersey, which was launched late in March.
NetEnt also joined the World Lottery Association as its associated member. Essentially, the WLA is a member-based organization aiming to promote the interest of state-run lotteries and gambling operators from around the world. The Swedish gaming supplier said that its partnership with the organization would help it gain strength in the lottery market segment, one it considers quite important.
NenEnt launched the highly anticipated Guns N’ Roses slot game, part of the company’s latest gaming concept NetEnt Rocks, which also includes titles based on graphics and music of Motörhead and Jimi Hendrix.
Commenting on NetEnt’s performance during the three-months ended March 31, 2016, CEO Per Eriksson said that the company had a strong start to the new year, posting high growth in revenue, cash flow, and profits. Mr. Eriksson further noted that they have an exciting year ahead and that he is optimistic about the Swedish supplier’s future.
