Double-digit growth for NetEnt with UK launches looming
Sky Bet and 888 expected to go live this year - live casino progress "slower than expected"
Net Entertainment expects to launch its offering with three new clients, including two large UK-facing operators, before the end of this year, the Swedish-listed software firm said in its H1 interim results this morning where it posted a 14.6% rise in revenue.
Both 888 and Sky Bet are anticipated to go live with a NetEnt offering in the second half of the financial year, according to chief executive Per Eriksson, while Italian operator Lottomatica is also on track for an H2 launch.
Eriksson told eGaming Review the 888 launch is anticipated in September, and said the provider is “thrilled” by the opportunities opening up in the UK.
“It is very important for our growth into the UK where we still have single digit market share, and signing up these big operators is a good start,” he said.
However Eriksson admitted the provider’s live casino offering is progressing “at a somewhat slower pace than expected” with certain operators reluctant to fully market the offering until the launch of a new multi-player live dealer blackjack product later in the year.
The CEO’s comments came as Netent recorded double-digit revenue growth in the six months ended 30 June, up 14.6% from SEK259.5 to SEK297.5m, though profits were flat at SEK79.7m.
Third-quarter revenues are expected to be up year-on-year, after revenues in Q3 2012 were hit by a combination of the Olympic Games and a weak Euro, though Eriksson told eGR the firm was “not expecting significant quarter-on-quarter growth”.
“Year on year growth will be quite significant,” Eriksson said. “We experienced quite a weak Q3 last year when there was a lot of sports betting going on with the Olympics and not as much marketing around casino products, and there was also the usual seasonal effect and the weak Euro.”
“We have most of our revenues in Euros and most of the cost base in Swedish Krona so we had a double hit in Q3 2012 with a very weak Euro so the revenues came down, therefore year on year growth will be pretty good in Q3,” he added.