Gaming industry giant Net Entertainment has recently released its Q4 result for 2016 and it shows that the company has been exceedingly successful last year. Even better, the company’s future also looks very good. It is worth delving into the company’s reports, not just to find out how much it earned but also to see the direction in which the company is heading as it enters the new year.
Strong Q4 2016 Performance by NetEnt
According to the report of Q4 2016, revenues showed an impressive increase of 23.9% to touch SEK 400 million. Operating profits also jumped 28.1% to reach SEK 156 million. There was also a huge increase of 37.7% in operating margins. The company showed profits of SEK 150 million which represented a 29.6% increase. Considering that Q4 2015 also had a very good performance, 2016’s results indicate that the company is on a very strong footing.
The report also indicated that the Swedish company was focusing on expansion. It inked 13 new deals with customers and also launched 12 new casinos for customers during this period.
Yearly Performance of NetEnt
NetEnt’s figures for the year showed strong performance throughout. Revenues jumped 28.5% to reach SEK 1,455 million while operating profit of SEK 536 million showed a higher increase of 33.4%. The company’s operating margin climbed 35.5% while profit after tax showed a similar increase (34.9%) at SEK 504 million.
The company also showed significant expansion during 2016 with a total of 45 new customer deals. 34 new casinos were also launched for casinos, with 31 more lined up for launches in 2017.
NetEnt’s Major Achievements
2016 has been a year of important organizational achievements at NetEnt. The company inked a large contract with Gauselmann to provide content for gaming machines meant for the Italian market. The company also finalised a deal with Paddy Power concerning gaming machines in the UK. There have also been product launches in Portugal and Bulgaria, both of which are regulated markets. Another NetEnt deal was done with Codere concerning the distribution of internet based games in Mexico.
NetEnt CEO and President Per Eriksson said that 2016 was a very significant year for the company given its achievements in revenues, profitability, and also cash flow. He also pointed out that another development in 2016 was Great Britain becoming the country’s largest market. The company has also made significant breakthroughs in the mobile gaming business with the launch of a Live Casino Roulette product for mobile phones.
Net Entertainment also lived up to its reputation as a provider of high-quality games that are immensely popular with customers everywhere and therefore help operators generate large revenues. It’s Guns N’ Roses slot game, part of the NetEnt Rocks trilogy, was awarded best game of the year at the EGR Operator Awards which took place in London. There is always a great deal of expectation from NetEnt games because of the company’s dedication to quality. The company’s Dracula video slot game made in collaboration with Universal Studios is a huge hit because of its fabulous graphics and thrilling gameplay. With a payout percentage of 96.58%, this is, without a doubt, a game worth trying out.
Big Plans for the Future
Erikson has very high expectations from his company for the coming year and expects it to continue delivering excellent numbers. The company intends to consolidate its UK business whilst expanding into North America. At the same time, it will continue working towards developing the mobile business because this is an area that has massive potential. The company will also be working on delivering new games on a regular basis. Overall, its intention is to expand its business by influencing market behaviour.