NetEnt leapfrogged and broke all records with a profit growth of 35% and 28% increment in revenue in the year 2016. These numbers break all the previous records held by the leading Stockholm listed software and online games provider. The CEO of the group stated that there is an excellent potential for the company to grow in Great Britain.
NetEnt’s revenue surged by 24% in the last quarter of 2016, amounting to $45.1 million or SEK 400 million. The tax profits increased by 30%, amounting to SEK 150 million, while there was a 28% hike in operating profit to finish the year at SEK 156 million.
As for NetEnt, the last quarter of 2016 turned out to be an excellent phase, when the revenue climbed to SEK 1.45 billion, breaking the previous records. The operating profit too, increased by one-third, amounting to SEK 536 million. The profits soared to SEK 504 million, increasing by 35%.
The key behind the grand success lies in the fact that the flow of fresh casino operators had been constant. They signed up to its gaming portfolio. NetEnt shattered its own record in 2016 as it signed up as many as 45 new customers, launching 35 casinos that operates off its platform. Apart from these, 31 new casinos are yet to be launched.
UK is the greatest regional market of the company, and NetEnt has recently signed an agreement with Paddy Power, the gaming giant from Ireland. Besides, the business has already entered the markets in Portugal, Mexico and Bulgaria.
Per Eriksson, CEO of NetEnt said that 2016 was another year full of excitement for NetEnt. New records were created in revenues, cash flow and earnings. He added that the development in the fourth quarter was responsible for the increase in revenues by 23.9% and the improvement in the operating margin by 39%.
He said that for the first time, Great Britain became their largest geographical market. It had provided NetEnt with great potential for growth.
It resulted in a massive exposure of the players to NetEnt’s online games, something that will assist the group to grow in 2017. NetEnt firmly believes that the first quarter of 2017 will witness the same growth that helped it soar high in the last quarter of 2016.
Eriksson stated that the conditions for growth looks favorable in 2017, with a number of new games coming into the market, new customers, UK, mobile and the growth of business in North America.