NetEnt Growth Slows in Second Quarter

Swedish betting group NetEnt has revealed their second quarter 2018 financial results, revealing that growth was 5.9% during the period.

The growth was slower than the 9.4% posted during the first quarter. This is being attributed to currency devaluation against the Euro and British pound, as well as well as slower performance in key markets.

Key financial indicators for the period ending June 30th, 2018 were:

  • Revenues of SEK437.2 million, up from SEK412.8 million last year
  • Profit up 1.2% to SEK149 million
  • Margin of 34%
  • 10.8 billion gaming transactions during the quarter, up 7% from last year

Other highlights for the company were 14 new licencing agreements, with 15 new casinos supporting the software launched. The company has cashflow of SEK431 million for the first half.

The company is looking to the future, with an eye on the American betting market as legalized sportsbetting begins to take shape. The company has a presence in New Jersey and is looking to other states to begin offering their online services.

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lvblck
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15 July 2018 - 12:55pm
#1

I think it's normal. The industry is going through a lot of changes and sports bets are becoming more and more popular and they still had growth and it's ok to have it a bit slower- I'm sure they will get it back up during next quarter!

bgsharpe
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17 July 2018 - 8:24pm
#2

Well I don't know if the Euro- Pound rate is the main reason for the NetEnt step back in the last months or even the past year, I think it's has more of a connection with their latest game releases and I don't think right now they are one of the two leading game developers in the sector as it was back then.
So all that and probably a few other reasons has more to do with their current drop in numbers than the currencies rates.

krcoolsongss
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19 July 2018 - 4:31pm
#3

Their financial performance is still very good. And the future is bright with many good news.