NetEnt Still Celebrating Despite Lower Than Expected Numbers

0
3131
NetEnt

NetEnt is a technology provider in the gambling arena, which has said 2017 was “eventful,” although not what they expected. NetEnt is listed on the Stockholm exchange, and they released their numbers for 2017. Their revenue report was $52.4 million for the last quarter of 2017, with a year on year increase of 4.7 percent. Their operating profit was down 3.9 percent, but the after-tax gain showed a 1.5 percent rise.

Overall, the revenue improvement was over 11 percent. CEO Per Eriksson said their revenues were not as good as they hoped due to forced exits from Poland, Australia, and the Czech Republic. These three countries put restrictions in place that prevent online gambling. The fourth quarter was affected by 3 percent revenue loss.

NetEnt also stated their bottom line earnings was affected by investments designed to grow the company, which meant better products and sales organization. They are attempting to increase their Live Casino options and are expanding by moving their offices to Malta.

NetEnt wants to reassure their investors that they are going to work towards revenue gains for 2018, with an eye towards organization growth versus costs.

New Customer Gains

NetEnt brought in new customers during the fourth quarter. In fact, they have eight new customers, which brings the yearly total for 2017 to 37 new clients. NetEnt also launched 35 new casinos last year for customers. One launch was Mobile Black Jack, which went to the Live Casino in the fourth quarter. It helped to increase the mobile’s share revenue up to 54 percent.

NetEnt is going to launch 20 new games in 2018, which is increased from 14 in 2017. The new games include NarcosTM, which is also part of a deal with Netflix and their series that uses the same name. NetEnt is partnering with Mr. Green, which offers a live casino, in what they call the “fully immersive” style. There is already Live Beyond Live, which provides the live casino product.

NetEnt is expecting a better revenue year and promises their stockholders that they will have one, by releasing new games, gaining new customers, and launching new customer websites. The move to Malta may hinder the reported revenue, but it is at least an expected cost for the company. The idea is to improve operational costs by going to Malta instead of remaining in Stockholm. Malta has become the place for casino based operations.

LEAVE A REPLY

Please enter your comment!
Please enter your name here