Strong commercial pipeline sees NetEnt post Q3 revenue & profits boost

Publishing its Q3 2016 trading update (period ending 30 September), Stockholm-listed industry games developer NetEnt AB has reported a further consecutive quarter of top-line growth on all metrics.

Closing its Q3 2016, NetEnt would record a corporate revenue increase of 27.7% to SEK 357.4 (Q3 2015: 279.8 million). Its strong revenue performance would see the games developer post operating profits of SEK 129 million (€13.3 million), and profits after tax of SEK 119 million (€12.2 million).

Detailing performance drivers, NetEnt governance pointed to the firm’s strong commercial pipeline, which had seen 11 new customer agreements signed during the period including UK gambling operator Rank Group Plc.

Updating investors on its year-to-date performance, NetEnt governance are confident of hitting all corporate expectations as the company hits a yearly operating profit of SEK 380 million (€39 million) up 35% on 2015 YTD performance.

NetEnt governance detailed that the company would continue its focus on expanding its services within regulated European markets. Governance stated that it would support its strategy by ‘increasing the number of employees’ and adding further resources to the development of its platforms.

Per Eriksson, President and CEO commented on corporate performance

“NetEnt’s growth strategy keeps delivering results – we grow in new markets, with new products and with more customers. During the quarter we launched our games in the regulated market in Romania and we rolled out our live casino product for mobile.”

“The UK continues to be an important growth driver but the weaker pound had an estimated negative effect of about three percentage points on revenue growth compared to the same quarter last year. Our ambition to achieve continued strong sales growth in 2016 remains.”