Swedish internet betting software developer Net Entertainment has released their first quarter 2016 financial results, noting that revenues rose 33.7% and that post-tax profits were up 64.1%.
Key financial indicators for the first quarter ending March 31st, 2016 were:
- Revenues for the first quarter increased by 33.7% to SEK 345.4 (258.3) million
- Operating profit amounted to SEK 128.1 (81.8) million, an increase of 56.6%
- Operating margin was 37.1 (31.7)%
- Profit after tax amounted to SEK 121.7 (74.2) million, an increase of 64.1%
- Earnings per share amounted to SEK 3.04 (1.86) after dilution
- 9 new license agreements were signed, 8 new customers' casinos were launched
Other corporate highlights for the period were:
- License agreement signed and games launched with PokerStars in New Jersey
- NetEnt became associated member of World Lottery Association (WLA)
- Administrative Court of Appeal ruled in NetEnt's favor in tax dispute
- Guns N Roses slot game was released
- NetEnt won prestigious awards at International Gaming Awards, Gaming Intelligence Awards and EGR Nordic Awards
Commenting on the results Net Ent CEO Per Eriksson said, "We have had a strong start to the year with high growth in revenues, profits and cash flow. Revenues for the first quarter increased by 33.7 percent and operating profit increased by 56.6 percent, compared to the first quarter of last year. The operating margin was 37.1 percent, a significant improvement from the same period last year thanks to rising revenues and economies of scale. The number of gaming transactions was 8.9 billion in the first quarter, representing an increase of 37 percent compared to the previous year.
We follow our growth strategy and the expansion in Europe and North America continues. We signed nine new license agreements and launched eight new customers' casinos in the first quarter. We also extended our collaboration with PokerStars and went live with our games on their site in the state of New Jersey. We have successfully signed up all gaming operators in New Jersey and have quickly gained market share and traction with our games there, which is good for our future growth not only in New Jersey, but also in other US states if and when they decide to reregulate the online gaming market. Mobile games and the UK market continue to contribute significantly to our growth. Revenues from the UK almost doubled compared to the same period last year and mobile games represented 33 percent of our game win in the quarter, a sharp increase from the level of 21 percent last year."