After an extremely productive and exiting year, NetEnt has released its year-end report for 2016, along with company’s quarterly report for the fourth quarter of 2016.
NetEnt Ends 2016 on a Positive Note
Per Eriksson, the President and Chief Executive Officer of NetEnt, commented on the 2016 year-end results. He noted that the year ended with record revenues, cash flow, and earnings. In the fourth quarter, revenues were up by 23.9%, and the operating margin was 39%.
In his projections for the coming year, Eriksson said: “Great Britain continues to offer great growth potential for us and in December, it became our largest geographical market for the first time. Looking ahead in 2017, we see conditions for continued solid growth, supported by a strong pipeline of new games, UK, mobile, new customers to launch as well as our expansion in North America.”
Some important events that took place in the fourth quarter of 2016 included a retail agreement with Paddy Power in Great Britain, and the launch of NetEnt products in both Portugal and Bulgaria. NetEnt also signed agreements with Codere in order to distribute games in Mexico, and with Gauselmann in the Italian gaming market.
In 2016, NetEnt’s full year revenues increased by 28.5%. Operating profits increased by 33.4% with an operating margin of 36.8%. Profits after taxation increased by 34.9%. The digital entertainment company entered into 45 new customer agreements during the year, with 34 customer casinos being launched. At year-end, NetEnt had signed agreements with an additional 31 customers that are expected to launch in 2017.
In 2016, NetEnt developed mobile Live Casino Roulette, and is anticipating further growth in this area in the coming year. The NetEnt Rocks trilogy was released, and the Guns N’ Roses slot game won the EGR Operator Awards prize as Best Game of the Year. Other popular game launches in 2016 included Little Red Riding Hood, Warlords, Drive, and Aloha.
The award-winning gaming software provider, NetEnt AB (publ) began offering gaming solutions in 1996. NetEnt offers innovative gaming, and stays at the cutting-edge of the gaming industry. The company has grown and expanded into seven countries. NetEnt’s head office is located in Stockholm, with other offices in New Jersey, Gibraltar, Malta, Kiev, Krakow, and Gothenburg. The digital entertainment company employs over 900 people in its offices around the world. NetEnt is listed on the Nasdaq Stockholm (NET-B).