NetEnt boosted by expansion strategy in first quarter

28 April 2015

Online gaming content developer Net Entertainment (NetEnt) has cited its ongoing expansion strategy as one of the main reasons behind year-on-year growth across key financials in the three months through to March 31, 2015.

Revenue in the first quarter amounted to SEK258.3 million (€27.5 million/$29.9 million), up 37.1% on the SEK188.4 million posted in the corresponding period last year.

Operating profit was up 598% from SEK51.2 million in the first quarter of 2014 to SEK81.8 million in the opening period of this year, while NetEnt’s operating margin increased from 27.2% to 31.7%.

Elsewhere, profit after tax jumped 60.9% on a year-on-year basis from SEK46.1 million to SEK74.2 million.

In addition, earnings per share amounted to SEK1.86 before dilution, up from SEK1.17 last year, while earnings per share after dilution were up from SEK1.16 to SEK1.86.

Per Eriksson, president and chief executive officer of NetEnt, said: “We have made a very strong start to 2015, reaching new record levels for both revenues and profits.

“Our innovative gaming solutions as well as our strong expansion on new and existing markets are among the reasons for the high growth and good profits.

“We are constantly developing our offering to be at the forefront in terms of technology, innovation and quality.

“As of the second quarter of 2015 all newly released games - for both desktop and mobile – will have been developed in HTML5, which is expected to bring some synergies going forward.

“I look forward to the rest of 2015. We have strong momentum - our customer offering is world-leading and we are well prepared to seize new business opportunities on the growing digital casino market.”

Meanwhile, NetEnt has utilised its partnership with Universal Studios Monsters to launch a new video slot title.

‘Universal Monsters Dracula Online Slot’ is a five-reel, four-row and 40-line game that is available via both desktop and mobile devices.

The new game features free spins, stacked symbols, stacked and regular wilds, as well as a ‘Bat’ feature that transforms symbols on the reels to random symbols.

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