Net Entertainment (NetEnt) is a digital casino company. Based in Stockholm, Sweden, it provides premium gaming solutions to the internet’s most successful online casino operators. As reviewed and vetted by Gambling.org , NetEnt has steadily progressed since its entry into the gaming market in 1996. It is now one of the most sought after names in the industry.
Case in point, revenue for the first half of 2016 is up by nearly one-third. In a recently released trading statement, NetEnt announced H1 (first half calendar year) earnings for total revenue of $82.3 million, a 31.7 percent increase. Net profit after tax was $27.7 million for a 46.3 percent increase. The increase in revenue is showing a sustained trend as second quarter figures were slightly better than first quarter, with margins improving to 34.8 percent. Per Eriksson, NetEnt CEO, said that Q2 evidenced a “strong demand for our products” and “continued strong growth” for the year remaining.
The second quarter saw twelve new customer agreements signed, one of which was a major deal with Rank Group, which is one of the largest gaming companies in Europe. Rank Group has a very significant presence in the UK, which bodes well for NetEnt because the UK has the largest online casino market in all of Europe. NetEnt will be supplying online casino games to Rank Group’s Grosvenor Casinos and Mecca brands. Second quarter also included deals with six additional new clients for NetEnt products.
Not being solely limited to the EU gambling market, NetEnt has established a presence in the U.S during H1. They began providing mobile and online casino games to the New Jersey-facing site of Amaya Gaming’s PokerStars brand. With its stellar reputation as a digital casino solutions provider, NetEnt is focusing its future plans on expansion in the U.S. market when online gambling legalization is approved in more states. NetEnt’s Brand Director for North America, Bjorn Krantz, had a very good point about future competition in North America. Because of high market entry barriers, Krantz believes that competition will be limited. He feels that “there will be a natural filtering out of companies that do not have the organizational bandwidth, operational maturity and financial strength to fully comply with regulatory requirements” in US states’ regulated markets.
Even with great execution of excellent marketing plans, there’s always potential for an unexpected event. Q3 numbers for the latter half of this year may show a dip. In early July, a slot player on the Scandinavian online casino Casumo hit big. NetEnt’s MegaFortune paid out €3 million for the jackpot. Great advertisement for NetEnt’s slot games but still a big OUCH!