New client wins drive NetEnt revenues up 35%
Gaming supplier also posts a 62% rise in H1 profits following the launch of 15 new casinos
NetEnt this morning posted a 35% increase in revenues and a 62% rise in operating profit for the first six months of the year, growth the supplier attributed to the launch of 15 online casinos and a raft of new client wins.
Total revenues for the period ended 30 June were SEK529.5 (£41m) and operating profit stood at SEK174.5m (£13m), with the figures boosted by fresh income derived from new clients such as bwin.party, Danske Spil, PokerStars and Gamesys.
The Stockholm-listed firm was also able to increase efficiency over the period as operating margin increased from 27.4% to 33%. Meanwhile NetEnt said mobile contributed 23% of total game win, up from 13% year-on-year.
The H1 results come on the back of a strong 2014 for NetEnt in which revenues increased 35%, and growth is expected to continue into H2 after NetEnt entered Spain in June and should launch in New Jersey on receipt of a licence in the coming months.
Speaking to eGaming Review, NetEnt chief executive Per Eriksson (pictured) said the rise in operating margin and profits were primarily due to the maturing of earlier investments.
“The improved margin was very much a scaling on the investments we made in earlier years which are now paying off, especially in the UK market where we see very good growth but also with products like live casino where our investment is starting to pay dividends,” Eriksson said.
“Of course there will be new investments to come with the entry into New Jersey and improvements and investments in our platform as well,” he added.
The firm also revealed the increase in clients saw its systems process 6.5 billion transactions during Q2, an increase of 26% when compared to the same period in 2013.
Last month NetEnt scooped a hat-trick of awards at the eGR B2B Awards in London, topping the innovation in mobile, slot provider and mobile supplier categories, awards Eriksson said were “further proof that our investments generate results”.
NetEnt’s share price was up SEK22 to SEK369 after early morning trading.