The online digital gaming solutions company, NetEnt, has had a positive first quarter. The company has been following an expansion strategy that is already showing results this year.
NetEnt's First Quarter Report Highlights
During the period between from the beginning of January until the end of March 2015, there have been some key events that have led to the increased profits. Towards the end of the quarter, NetEnt was granted a local license to operate in the UK. In addition to this, Rational Group's Full Tilt launched NetEnt casino games, seven new customers launched casinos, and 11 new license agreements were signed. The new licensing agreements include some major names in the gaming industry, such as Gamesys in the UK, Danske Spil in Denmark, and Codere in Spain.
The first quarter revenue reached SEK 258.3 million, which is up from last year's first quarter by 37.1%. Last year's first quarter report showed revenue of SEK 188.4 million.
Operating profits were up by an incredible 59.8% when compared to the first quarter in 2014. 2014 showed operating profits as SEK 51.2 million, which increased to SEK 81.8 million this year.
Profits made after tax increased by 60.9%, which amounted to SEK 74.2 million. Shares earned SEK 1.86 before dilution, and remained the same after dilution.
Per Eriksson Comments
NetEnt's President and Chief Executive Officer, Per Eriksson, had the following to say regarding the successes of the first quarter: "We have made a very strong start to 2015, reaching new record levels for both revenues and profits. Our innovative gaming solutions as well as our strong expansion on new and existing markets are among the reasons for the high growth and good profits."
Mr. Eriksson further explained that the company's growth strategy is based on expanding operations in regulated markets. The first quarter shows expansion in Denmark, Spain, and the UK. At this time, the company is in the licensing process in New Jersey in the United States, and is continuing the process in the Italian gaming market.
"I look forward to the rest of 2015. We have strong momentum - our customer offering is world-leading and we are well pleased to seize new business opportunities on the growing digital casino market."
NetEnt has offices in Stockholm, Malta, Gibraltar, Gothenburg, and Kiev, and is listed on the Nasdaq Stockholm (Net-B).