NetEnt Revenues Down 2.8% in First Quarter

Swedish gaming firm NetEnt has posted their first quarter 2019 financial results, noting that revenues were down 2.8% to SEK 418.1 million during the period.

Key financial indicators for the quarter ending March 31st, 2019 were:

• Revenues down 2.8% to SEK 418.1 million, with Swedish operations responsible for the dip, due to regulations that were implemented on January 1st
• Swedish revenues accounted for 10% of NetEnt's bottom line, down from 14% last year
• UK revenues accounted for 14% of revenues
• Other European markets accounted for 50% of revenues, up from 47% last year
• The US brought in 10% of revenues, showing growth in the new market
• Game transactions down 4.4% to 10.9 billion
• Mobile revenues accounting for 62.5% of NetEnt's bottom line
• Five new games were released during the quarter
• Operating expenses down 1.3% to SEK 292 million
• Operating profit of SEK 126.1 million, down 6% from last year
• Pre-tax profit of SEK 130.9 million, down 17%
• Post-tax profit of SEK 120.2 million

NetEnt CEO Therese Hillman spoke about the results, sharing: "In the first quarter, we continued to focus on improvements throughout the organization. The operating margin (EBIT) was 30.2 percent. It is difficult to predict the long-term market dynamics, but with our investments in new games, Live Casino, new functionality for customers and players, as well as a strong balance sheet, we are in a good position to defend and, longer-term, increase our market shares."