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NetEnt has revealed their numbers for the first quarter of 2018 and judging by the company’s interim report, revenue and operating profit increased compared to the same period in 2017.
Operating revenues increased 9.3% from $46.25 million to $50 million.
Growth could have been 10.4% when excluding $710,000 in severance pay for the previous CEO Per Eriksson’s departure. Eriksson was removed from the company last month after NetEnt board ruled that the performance of the company hadn’t met their expectations in 2017. Therese Hillman, chief financial officer was appointed at his position to initiate measures to enable margin expansion going forward.
Eriksson’s severance also explains the minor fall in operating margin from 32.2% in 2017 to 31.2% this quarter. The company’s earnings before interest and tax (EBIT) showed that the operating profits had increased from $14.92 million to $15.78 million. This is attributed to NetEnt’s performances in well regulated markets with Italy as the most successful one for growth. Norway had a negative impact on revenues in this quarter and company also spent a lot of money on newly launched products and currency effects. The expenses rose from $31.3 million to $34.72 million in total.
“Among other things, the company is taking action to reduce costs; for the remainder of the year, we see conditions for better growth, supported primarily by regulated markets, more new games and new customers. We continue to work on optimizing the organization and to make sure that revenues grow more than costs.”
Fredrick Erbing, a board member since 2008 and a member of Audi Committee will reportedly replace Vigo Carlund, the chairman of the board who stepped down for personal reasons.
NetEnt has signed 6 new customer agreements and launched 8 new customers’ casinos. The company also doubled game portfolio for Czech Republic. Five new slot games were released, adding to the already impressive offering from the company:
Mexican Caliente launched NetEnt games and Live Beyond Live was introduced with Mr Green with whom a digital marketing service contract was also signed.