NetEnt’s growth slowdown continues in Q2

NetEnt this morning reported a 6% rise in Q2 revenues to SEK 437m (€44m), although the figure represented a -0.8% decline in Euro terms.

EBIT also saw slow growth, up by 1.2% to SEK 149m (€15m), as the firm continued its below-market growth of recent quarters.

NetEnt CEO Therese Hillman said: “During the quarter, we came up with a plan and started taking action in several areas to strengthen our customer offering, cut lead times, and free up resources for new commercial projects.

“These changes are necessary for us to reassert our strong market position in online casino. I look forward to a busy autumn, focused on the turnaround of NetEnt, with improved efficiency and many new products and growth initiatives that all have players and customers in focus,” she added.

NetEnt sacked former CEO Per Eriksson in March after the online casino supplier’s Q4 financial results lagged well behind market forecasts.

Hillman was appointed permanent CEO in May and has been tasked with returning the group to growth.

Regulus Partners analyst Paul Leyland attributed NetEnt’s slowed growth to maturing Northern European markets like the UK and the rapid growth of mobile-led non-legacy businesses.

Leyland said: “NetEnt has reacted swiftly to the slowdown in growth from a management and operational perspective but there is no doubt that a number of improvements can be made.”

NetEnt signed eight new casino customers in the quarter and seven of them have launched, along with five new slot games.

The supplier also developed its live casino product during the period by adding World Cup themed live roulette and a sports betting widget in partnership with Stoiximan.