Just as expected, iGaming software developer NetEnt has had a successful year so far and convincing third-quarter (Q3) results to show. Expanding into new markets and signing important partners has been the underlying strategy of NetEnt occasioning its strong growth.
NetEnt Q3 Results Go Up Again in 2018>/h2>
On Thursday, NetEnt posted its revenues, marking a solid growth across its entire portfolio. The sum stood at $42.9 million in the quarter, ending on September 30, which in itself marked 11% year-over-year increase. In terms of earnings, the company managed to notch up 16.7% more, posting SEK 227.5 million, reporting a striking 50.6% uptick.
The Swedish company managed to also improve in purely financial terms, managing 9% increase in its after-tax profit, which ended on SEK 155 million – yet another indicator of NetEnt’s resilience and business acumen in establishing strong partnerships.
The company had to also undergo internal overhaul, seeing now former CEO Per Eriksson step down in March and be quickly replaced by the capable hands of Therese Hillman. Ms. Hillman did in fact commend the advancement of the company, citing the release of important iGaming products.
The third quarter was marked by a strong start thanks to the successful release of the game Jumanji. – NetEnt CEO Therese Hillman
She hailed the release of Jumanji, the movie-inspired game, which was one of the most successful 3D slots in the history of the company, making full use of variety of specific features that increase engagement with users, but also introduce distinct elements of storytelling.
Canada and the United States Become Important Markets
In Q3 2018, NetEnt expanded in Canada and the United States, with the company securing an important contract with the British Columbia Lottery Corporation in the former, and steadfastly expanding in the latter by striking up a partnership with the Hard Rock Atlantic City’s online iGaming operator.
To top things off, NetEnt saw itself successfully drive a foray into Lithuania, launching its first licensed operator in the country.
. We continue to make efforts to lower overhead costs and to optimize the organization for commercial drive and increased pace of output, and I see room for improvement next year in several areas. – Hillman
If NetEnt were writing a book, it would rightfully be called “The Art of the Deal”. Business acumen has continued well into Q4 2018, with the company now having successfully brokered a number of deals with noteworthy operators, including Svenska Spel, Veikkaus, and continuing its push in the United States by signing Churchill Downs Inc, the famous racing track and betting company.
Our net cash position provides us with financial flexibility and allows for continued solid cash returns to shareholders. – Hillman
NetEnt has also capitalized on customer conversion by offering people a chance to experience the games in free play, while enjoying the full array of features and then inviting users to join NetEnt’s affiliated partners for real money play.
Converting customers is part of the developer’s new affiliate business, which will seek to collaborate more closely with casino partners in the hopes of bringing in more potential users interested in using the company’s iGaming products.