NetEnt announces solid full-year figures
Revenues up despite drop in operating profit for 2011.
Net Entertainment (NetEnt) has shown solid fourth-quarter growth with revenues increasing 21.6% year-on-year to SEK121.1m (£11.5m), the company revealed in its results for the three months ended 31 December.
This strong showing helped the software provider post an increase in revenues for the full year, up 16.1% from SEK368.3m to SEK427.6m, alhough interim CEO Björn Krantz revealed that the strengthened Swedish currency had held back income growth for the year.
Despite a 25% rise in operating profit for the quarter, the full year figure fell 5% to SEK127.9m, a drop attributed to the cost of the expansion of the group, expenses related to regulation, and new product development.
Among the new products developed in 2011 was the company’s first mobile offering for iPhone and iPad, NetEnt Touch, which will launch over the course of this year. This will be followed by a live casino offering, expected to come to market by the end of the year.
Regulatory costs rose due to a number of agreements signed in the Danish and Italian markets. During the fourth quarter NetEnt signed several deals with operators in Denmark, including Betsson, Unibet, Bet24 and Sportingbet, while in Italy the company launched on Intralot Interactive.
NetEnt has also signed an agreement to launch in the UK with Sky Betting & Gaming, and deals with bwin.it and G.Matica to supply their products for the Italian market.
Commenting on the results, Krantz, said that the increased investment allowed the company to provide a more complete casino offering and maintain its position in the market:
“We will continue to invest in our business and organization to secure the opportunities identified by the company, and to ensure short and long term competitiveness. We are taking another step towards becoming a full-scale provider within online casino and it is very exciting to be able to offer our partners a broader product portfolio which strengthens both business and customer value in our strategic delivery responsibility as a supplier,” he explained.
Krantz will return to his previous role as managing director of NetEnt in March this year, when new group CEO Per Eriksson joins the company. Eriksson will replace Johan Ãhman, who resigned in August after five and a half years as CEO.