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NetEnt Reports Rise in Revenue During Q3 2018
- November 1, 2018 By Riley Wilson -
The leading developer of online gaming content NetEnt has announced its results for the third quarter of 2018, revealing an 11% increase in revenue.
During the three-month period ended on September 30, NetEnt recorded revenue of €43.2 million, while the main factor behind this growth was the release of a number of new games, including Mirror Mirror, Swipe & Roll, Berryburst, Double Stacks and Jumanji.
New Games Making a Difference
In addition to launching new games, NetEnt signed several important new agreements, including those with Hard Rock in New Jersey, Norwegian state-owned operator Norsk Tipping and the British Columbia Lottery Corporation.
NetEnt’s slot games accounted for 91.6% of the entire revenue! Table games contributed with 8%, while other products from the company’s portfolio brought home 0.4% of the loot. Mobile has further increased its share in the overall revenue, contributing 61% of the total sum.
The renowned developer signed a total of 9 new game license agreements during this period with 14 new customers. It should be noted that by the end of the third quarter, 23 new agreements were waiting to be launched.
NetEnt also launched its new in-house developed affiliate business, where customers can gain access to free-play variants of the games in the company’s line-up, and made a step into the social casino market, launching a desktop version of its Facebook application, which has been made available for players in the US.
More to Come in the Future
The company reported a rise in operating expenses, which were up by 11% when compared to the corresponding period of 2017. The increase in costs was blamed on the hiring of new staff, launching of new products, and depreciation linked to currency effects.
Earnings before interest, tax, depreciation, and amortisation (EBITDA) was up to €21.97 million while operating profit was also on the rise (€16.7 million). At the same time, profit after tax recorded a year-on-year increase of 9.8% to €15 million.
Since the beginning of the year, NetEnt’s total revenue reached €127.8 million, which is 8.7% more when compared to 2017, with operating profit rising by 12.3% to €42.7 million.
Commenting on the latest results, NetEnt Chief Executive Officer Therese Hillman said the third quarter had been marked by a strong start and pointed out the company aimed to release a significantly higher number of new games in 2019 and going forward.