Gains in the UK and Italy drive NetEnt Q2 growth
Revenues up 16% to £38m with operating profits up 12% to £26m
NetEnt has reported a 16% rise in Q2 revenues to SEK 407m (£38m), with regulated markets credited for driving the supplier’s growth.
Operating profit hit SEK 281m (£26m), up 12% year-on-year, with an operating margin of 35%, down 0.9pp.
The firm said UK and Italy contributed the most to its growth in the quarter, with the UK now the firm’s largest market.
“We continue to see great potential for [UK] market share gains in the coming years as we are working even harder to expand in this market,” NetEnt CEO Per Eriksson said.
The firm said revenue growth in Sweden was relatively slower thanks to its high market share and the maturity of the market.
Eriksson added: “I am very pleased that we continue to see fast growth in regulated markets such as Denmark, Belgium, Spain and New Jersey.
“The launch of table games in Spain during the quarter will support continued solid growth for us in this promising market. In the US, our operations in New Jersey continue at full speed while we also closely monitor developments in other states that could potentially open up for online casino, such as Pennsylvania and Illinois.”
Going forward Eriksson, pledged more investment in new employees and the company’s platform in H2.
“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,” Eriksson said.
“We strengthen the organization to increase our output capacity, enter more regulated markets and integrate a large number of new customers. With this in mind, we foresee an ongoing need to invest during the rest of 2017. We do this to enable continued solid growth with increasing economies of scale for NetEnt going forward.”