David Williams | 09 Mar 2017
Swedish gaming developer NetEnt has again revealed another strong quarter and a full year of burgeoning performance indicators. The growth noted in the developer’s year in review has been attributed to its exceptional performance in the mobile gaming space, as well as its expansion across several major new regulated markets and its persistently strong presence within the UK iGaming market.
NetEnt has recently uploaded new details on its financial results for the year and quarter ended on December 31, 2016. The developer’s quarterly revenues grew by a whopping 24% over the previous year, reaching $44.3 million. Operating profits for the same period totalled $17.3 million, a notable 28.1% boost over 2015’s results. Operating margins hovered at roughly 39%, and the company’s net profit after tax came to a respectable $16.6 million at a 29.6% increase year on year.
NetEnt’s revenue for the full year rocketed 28.5% over 2015’s results to £167 million, showing excellent growth for the iGaming provider. The company’s operational profits were boosted 33.4% to $59.5 million, and profits after tax climbed almost 35% to $56 million.
NetEnt has shown favourable growth across all of its verticals in the year in review, but the developer is particularly proud of its mobile gaming operations. The vertical has been the most rapidly-growing one for NetEnt lately, serving as an important way of boosting the company’s revenues. In 2016’s Q4, NetEnt’s mobile gaming products contributed 43% of its overall revenues.
The developer’s expansion into more regulated markets was also pivotal in its 2016 growth. NetEnt entered Bulgaria, Portugal and Romania with its online and mobile products during the year, and also secured a future entrance into the Mexican market by inking an extension to its current deal with the Spanish operator Codere.
Throughout 2016, NetEnt was also able to secure a whopping 45 content deals with international iGaming operators. The company also went live with its online gaming content at 34 clients’ platforms during the year in review.
The UK iGaming market was a key player in NetEnt’s growth, and the company’s expansion into the industry has seen the UK become NetEnt’s largest market by far. A report from the UK Gambling Commission has shown that online gaming is now Britain’s largest gambling vertical, with gross revenues of over $5.5 billion being generated between April 2015 and March last year alone.
So far in 2017, NetEnt has also shown a strong start to the year in its report. The developer is expecting its positive growth to continue, and also expects to release plenty of new products. In this year’s ICE Totally Gaming expo, the company also revealed some intriguing developments in its virtual reality products with the new VR Gonzo’s Quest slot.