Swedish provider of software for the international gambling industry NetEnt posted its financial results for the three months ended June 30, 2016 and the first half of the year. The company reported significant growth in revenue and other key performance indicators during both periods in review.
During the second quarter of 2016, NetEnt saw revenue rise 29.8% to SEK352.1 million. In comparison, the amount of SEK271.2 million was generated during the same period of 2015. Operating profit totaled SEK122.4 million, up 32.1% year-on-year. Operating margin stood at 34.8% compared to 34.2% in the second quarter of the previous year. Profit after tax increased 31.1% year-on-year to reach SEK113.5 million.
NetEnt pointed out that during the reviewed period, it inked 12 new customer agreements with international clients. UK kept on being a particularly important market for the provider. For that purpose, it signed a key content distribution agreement with The Rank Group, known to be one of the largest land-based and online gambling operators in the country. What is more, its products went live at the casinos of six of its existing customers, with Tropicana in Atlantic City being among these. The company was also granted a license in Romania.
NetEnt highlighted that mobile continued being an important market vertical over the past three months. Revenue from mobile more than doubled during the period in review and accounted for 37% of the overall figure posted.
The company has recently launched its mobile live casino in a beta version with several of its clients. According to the initial feedback, the product was received very well.
During the first half of the year, the supplier generated revenue of SEK697.4 million, up 43.6% from the SEK529.5 million reported for the same six-month period of 2015. Operating profit amounted to SEK250.5 million, reflecting a rise of 43.6% year-on-year. Operating margin stood at 35.9% during the period in review as compared to 33% in 2015. NetEnt generated profit after tax of SEK235.2 million, up 46.3% year-on-year.
Of the company’s plans for the future, Per Eriksson, President and CEO of NetEnt, said that the Swedish supplier will keep on driving the online casino market with innovative solutions and entertaining gaming titles. The executive also pointed out that there are excellent conditions for a continued strong growth in the second half of the year as well.
