NetEnt Fails to Meet Financial Expectations

NetEnt Fails to Meet Financial Expectations

Despite having a brilliant year in regards to product releases, such as its most recent announcement of a slot based on the TV series, Vikings, as well as in terms of partnerships formed, NetEnt, did not meet expectations set. In fact, the supplier has actually underperformed – but has still managed to record a year-on-year growth.

Its 2017 financial results have officially been published – results that would have any other company over the moon, but giants of the industry as they are, NetEnt deems them underwhelming.

Some of the key numbers for the last years were:

  • Revenues of SEK 1.63 billion, up 11.7% from the same period last year -Operating profits up 9.5% to SEK 587 million
  • Post tax profits up 9.5% as well to SEK 552 million
  • Earnings per share of SEK 2.30
  • 37 new customer agreements signed and 35 new customers’ casinos launched -Proposed cash distribution to shareholders of SEK 2.25 (2.25) per share

Some of the most notable events in 2017’s Q4 include a customer agreement signed with Mexico’s Caliente, a new digital marketing service launched with Ve Global, Live Blackjack for mobile, and Planet of the Apes and Finn and the Swirly Spin releases.

President and CEO, Per Eriksson, commented: “2017 was another eventful year with profitable growth for NetEnt, even though we had expected a much better outcome. In 2018, we are increasing our commercial focus and optimizing our organization to make sure that revenues grow more than costs. I look forward to a new year with more game releases and product news than ever for NetEnt.”

He added: “Having just returned from the annual gaming exhibition ICE in London I can say that our roadmap for new games in 2018 looks very exciting. We are planning to release at least 20 new games, compared to 14 in 2017, including two branded games, JumanjiTM and VikingsTM. A third branded game that was unveiled at ICE is based on the popular Netflix-series NarcosTM and expected to be released in Q1 2019.”

Source:

“Year-end report 2017 and quarterly report October – December 2017”, netent.com, February 15, 2018.

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