UK, Italian Markets Help Boost NetEnt’s H1 Growth
NetEnt reported an immense growth in its revenues and operating profit. The popular software provider reported an increase in its profit by 18.5 percent for the second quarter, giving it a solid H1 for 2017.
Its success comes from its UK and Italian markets, and it can be attributed to the company’s effective expansion toward the mobile gaming market. Based on the report, it is this sector that contributed to the significant growth of NetEnt.
NetEnt’s growth in mobile gaming market
The software provider recently published its interim trading results for H1 2017. The NetEnt report said that the company delivered a strong growth in the first half of the year during which its revenue reached SEK 805 million. When comparing this year’s revenue to last year’s SEK 697 million, NetEnt’s revenue growth saw a 15-percent increase.
Apart from increased revenue growth, the company acquired 21 new customers during the H1 period of 2017. This leads to a period profit of SEK 281 million for 2017 which is higher than last year. NetEnt’s period profit in H1 2016 was SEK 251 million. This is a significant achievement given that the company experienced a decline in its operating margins of about 35 percent. After taxes, NetEnt declares group profit of SEK 258 million which is an increase of 9.5 percent in its performance than last year.
NetEnt’s increase in revenue and profit is thanks to its UK and Italian markets. Both of which contributed to the company’s growth during the period between April and June. Moreover, mobile games make up most of these markets.
Per Eriksson, president and CEO of NetEnt, said:
“During June, mobile games contributed more than half of our revenues while Britain was our largest geographic market for the quarter. For the second half of 2017, we see conditions for continued solid growth.”
Surprisingly, the Sweden market where NetEnt is based is one of the smallest contributors to the company. The low performance of NetEnt in Sweden can be caused by the country’s mature market and high market share.
There are many online casinos that have partnership deals with NetEnt. Some of these casinos are Bitcoin casinos that offer the expansive gaming portfolio of the software provider. In fact, Bitcoin betting sites like 1xBit and NetBet are just some of the Bitcoin-accepting and mobile-friendly casinos that have NetEnt games in their library.
What the future holds for NetEnt
Eriksson added that the company will continue its re-investment this year. Doing so will help sustain the company’s current growth rate. It can also help with the expansion of the company to another market.
Recently, the company obtained a supplier license for British Columbia and Canada. It also launched its games in the Serbia regulated market.
In regard to the outlook of NetEnt, he said:
“The future outlook remains bright and for the remainder of 2017, we see conditions for continued solid growth supported by new games, increasing market shares in the UK, mobile growth, many new customers to launch and our expansion in North America.”