NetEnt Q3 revenues up 25% following operator sign-ups
Software supplier sees revenues climb as demand for mobile sees increased investment
Net Entertainment has announced its Q3 2013 revenues have risen by a quarter following a number of new customer sign-ups including major UK operators Ladbrokes and William Hill.
The Swedish software supplier saw revenues increase by 25% year-on-year to SEK153m, which translates into total revenues of SEK451m for the first nine months of 2013, a rise of 18%. Third quarter operating profit amounted to SEK45m at an operating margin of 29.1%.
The results follow a busy period for the company in which, in addition to Ladbrokes and William Hill, it signed up new customers including 888 and Italian operator Lottomatica.
In addition, last month saw an agreement signed with GTECH which will see Net Entertainment offer its range of online casino games to GTECH’s World Lottery Association (WLA) clients. In total, Net Entertainment has signed up 22 new clients over the last 12 months.
Per Eriksson, president and CEO of Net Entertainment, was pleased with the progress the company had made in the UK in recent months and said discussions were on-going with a number of other major operators.
“I am excited about what the market in Great Britain can generate for Net Entertainment in the future when all operators are fully launched,” Eriksson said. “Discussions are also ongoing with all the large operators that have yet to sign up with Net Entertainment.”
Developing a greater range of mobile games is high on the agenda with the company pledging to invest further into the channel after increased demand from customers.
“Mobile games continue to grow strong but the product is still in an early stage,” he said. “We see a continued demand from customers to develop more mobile games. We will therefore increase the investments in mobile games to further strengthen Net Entertainment’s leading position.”
Net Entertainment also confirmed it is in the process of appealing a decision made by the Swedish Tax Agency to impose additional taxes of SEK92m.