Skip to main content
110% Deposit Bonus from mBit

NetEnt Enjoys Growth Despite Additional Operation Expenses

NetEnt’s Q1 2018 interim report shows a good revenue rate despite Eriksson’s large severance pay. NetEnt sees a good momentum with upcoming slots this year.

NetEnt enjoyed a positive increase in its revenue and operating profit despite paying an incredibly large severance pay to its previous CEO, Per Eriksson, as well as other expenses that affected the company’s bottom line.

As NetEnt’s Q1 2018 interim report indicates, the company still enjoys high revenue from locally regulated markets, generating figures higher than last year. To maintain the strong momentum, the company will launch over 20 games this year to surpass the 14 titles released in 2017.

Results of NetEnt’s Q1 2018 Performance

New Online Slots from NetEntOne of the key figures of the interim report is NetEnt’s revenue of 430 million kr for the first three months of 2018. This is an improvement from Q1 2017 393 million kr which is a growth of 9.3 percent.

While the growth is significantly high, the rate is lower than the expected at 10.4 percent. One of the reasons for missing the expected revenue increase is the payment of Per Eriksson’s severance pay package, which totals to 6 million kr or approximately US$710,000. The severance pay brought down the company’s operating margin to 31.2 percent in 2018 from 32.2 percent in 2017.

NetEnt’s operating expenses have also increased to 295 million kr in 2018 from 266 million kr in 2017. This is likely the costs of NetEnt’s live dealers’ salary and the relocation of the company’s offices to Malta.

Another reason for the missed revenue projection is NetEnt’s forced exit from Australia, Poland, and the Czech Republic because of new gambling restrictions. The three exits brought down the company’s revenue by three percent in Q4 2017.

In spite of the costs of the severance pay, new expenses, and departure from three markets, NetEnt managed to have a positive growth rate. The sustainable growth is attributed to the performance of NetEnt’s regulated markets with Italy being the highest contributing market.

| Related: Best Bitcoin Casino 2018: Quality Casinos, Games & Bonuses

NetEnt’s Focus on Company Growth

There will be several key factors that will help NetEnt’s growth. These include cutting down costs, release of new games, and signing new deals.

Therese Hillman, acting president and CEO of NetEnt, said:

“While NetEnt continues to focus on growth, measures were initiated in March to enable margin expansion going forward. Among other things, the Company is taking action to reduce costs. For the remainder of the year, we see conditions for better growth, supported primarily by regulated markets, more new games and new customers. For the remainder of the year, we see conditions for better growth, supported primarily by regulated markets, more new games and new customers. We continue to work on optimizing the organization and to make sure that revenues grow more than costs”.

NetEnt announced many upcoming slots early this year, like Narco and Vikings slots, which are based on two Netflix original shows. NetEnt already released several new slots this year which includes Archangels: Salvation, the company’s first 100 pay lines slot.

| Related: NetEnt Unleashes Archangels: Salvation with 4 Hot Features

1xBit Live Gaming Cup Play with Cryptos



Why Blockchain-Based Affiliate Program Is Better for the iGaming Industry

July 15, 2020

How much has changed in online casino affiliation since blockchain-based affiliate programs begin to operate in the expanding world of iGaming?

Uncover Fortunes in Gold Coin Studios’ ‘Arthur’s Gold’ in Microgaming Casinos with Bitcoin

July 15, 2020

Nevada-based Gold Coin Studios teams up with Microgaming to release its very first exclusive slot titled Arthur’s Gold, now added to Bitcoin casinos.

US Is Now Ready for Gambling, Survey Says

July 14, 2020

A new Gallup poll shows that more US citizens have changed their perception toward gambling, as they now regard the activity as ‘morally acceptable’.


Interview with Eman Pulis, Founder of SiGMA

July 14, 2020

We had the opportunity to talk to Eman Pulis, founder of SiGMA, a highly-successful iGaming expo and conference home to 14000 attendees and 500 exhibitors.

Interview with Gregor Rozic, Sales Manager at GameART

July 7, 2020

We’ve had the opportunity to talk to GameART Sales Manager Gregor Rozic, who has 10 years of experience in online gaming on casino and poker content.

Interview with Magnus Leppäniemi, VP of Marketing & Head of Esports at Esports Entertainment Group

June 30, 2020

We had the opportunity to talk to Magnus Leppäniemi, VP of Marketing & Head of Esports at Esports Entertainment Group and member of Advisory board.

Your Message

Please enter your email address:

No account yet? Register here
Forgot Password? Click here
Already have an account? Login
Forgot Password? Click here