NetEnt revenues up 35% as New Jersey launch nears
Gaming supplier also posts a 62% rise in H1 profits to US$20.1m
NetEnt this morning posted a 35% increase in revenues and a 62% rise in operating profit for the first six months of the year, as the supplier prepares to enter the regulated US market in New Jersey during the next quarter. [private]
Total revenues for the period ended 30 June were SEK529.5 (US$63.5m) and operating profit stood at SEK174.5m ($20.1m), with the figures boosted by fresh income derived from new clients such as bwin.party, PokerStars and Gamesys.
The H1 results come on the back of a strong 2014 for NetEnt in which revenues increased 35%, and growth is expected to continue into H2 with the firm set to launch in New Jersey â on receipt of a license â in the coming months though deals with bwin.party and Caesars Interactive.
The supplier also signed a cross-patent licensing agreement with IGT, which it said was âvery importantâ and formed the basis for its licensing process and entrance into the North American market.
Speaking to eGR North America, NetEnt chief executive Per Eriksson said the rise in operating margin and profits were primarily due to the maturing of earlier investments.
âThe improved margin was very much a scaling on the investments we made in earlier years which are now paying off, especially in the UK market where we see very good growth but also with products like live casino where our investment is starting to pay dividends,â Eriksson said.
âOf course there will be new investments to come with the entry into New Jersey and improvements and investments in our platform as well,â he added.
The firm also revealed the increase in clients saw its systems process 6.5 billion transactions during Q2, an increase of 26% when compared to the same period in 2013.