NetEnt shares down 19% after missing revenue forecasts
Group CEO Per Eriksson says exiting Poland, Australia and Czech Republic in 2017 resulted in lower-than-expected revenues
NetEnt has reported lower-than-expected revenue growth for Q4 2017, due in part to the supplier phasing out its games in certain markets.
In a trading update this morning, the provider revealed revenues for the period increased 3% year-on-year to SEK 419m (£37.9m), with an expected operating profit of approximately SEK 150m (£13.5m).
Group CEO Per Eriksson told investors revenue growth was 3% lower than expected due to the firm pulling out of Australia, Poland and Czech Republic last year.
After facing initial licencing set-backs in Czech Republic, NetEnt recently gained a licence to operate alongside a number of firms which entered the market under new regulations.
Eriksson said he expected a solid growth outlook for 2018, particularly in regulated markets such as Italy, Spain and the UK.
Growth is also expected to come from launching in new markets, such as British Colombia in Q1 2018.
The firm will release its full Q4 financial report on 15 February, while its shares dipped 19% to SEK47 in early trading on Tuesday.