NetEnt plans to take action as growth slows

NetEnt releases report on revenue

NetEnt has committed to improving its current rate, due to experiencing a slower second quarter than the first.

Therese Hillman, Group CEO, said in a statement: "During the quarter, we came up with a plan and started taking action in several areas to strengthen our customer offering, cut lead times, and free up resources for new commercial projects.

These changes are necessary for us to reassert our strong market position in online casino. I look forward to a busy autumn, focused on the turnaround of NetEnt, with improved efficiency and many new products and growth initiatives that all have players and customers in focus.”

Second quarter 2018:

• Revenues for the second quarter amounted to SEK 437 (413) million
• EBITDA amounted to SEK 202 (187) million, a margin of 46.3 (45.2)%
• Operating profit (EBIT) amounted to SEK 149 (147) million, a margin of 34.0
• (35.6)%
• Profit after tax of SEK 139 (136) million
• Earnings per share of SEK 0.58 (0.57) before and after dilution
• 8 (6) new customer agreements signed, and 7 (8) new customers’ casinos
• launched

First half-year 2018:

• Revenues for the first half-year amounted to SEK 867 (806) million
• EBITDA amounted to SEK 384 (350) million, a margin of 44.3 (43.5)%
• Operating profit (EBIT) amounted to SEK 283 (274) million, a margin of 32.6 (34.0)%
• Profit after tax of SEK 285 (251) million
• Earnings per share of SEK 1.19 (1.04) before and after dilution
• 14 (21) new customer agreements signed, and 15 (14) new customers’ casinos launched

Important events in the second quarter:

• The AGM elected Fredrik Erbing as new Chairman of the Board of Directors
• The Board appointed Therese Hillman as new CEO
• Five new slot games released, including Archangels Salvation, Lost Relics and Jumanji
• Beta-launched slot games for Social Casino
• Signed customer agreement with Hard Rock in New Jersey

Hillman continued: "Revenues for NetEnt increased by 5.9 percent (-0.8 percent in euro) to SEK 437 million in the second quarter of 2018. The operating profit (EBIT) increased by 1.2 percent to SEK 149 million, representing a margin of 34.0 (35.6) percent. Cash flow after investments increased by 35.8 percent to SEK 178 (131) million in the quarter."

"At the beginning of June, the Swedish parliament approved the new gambling law, and preparations ahead of the Swedish market re-regulation has intensified since then. NetEnt aims to have a broad selection of games certified when the new licensing system starts on January 1, 2019 and work closely with our customers on all fronts to ensure a successful market entry right from the start."

"We released five new slot games in the quarter: Archangels Salvation, Lost Relics, Jumanji, Witchcraft Academy and Bollywood Story. The latter two titles had previously been customer-exclusive and were released to the rest of our customers in June. The innovative game Jumanji combines slots and board game features and has been well received by players. So far, three weeks since its launch, it is our best game release this year."

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