Netent presents the 2017 annual report
The biggest news came last week: NetEnt put CEO Per Eriksson on the street. Today NetEnt made its annual report public.
NetEnt is one of the biggest players in the online gambling industry. NetEnt operates in 17 regulated markets, over 1,000 people work and hundreds of casinos offer games from NetEnt.
In 2017, turnover rose by 11.7 percent. That was a setback for the Executive Board and also for the shareholders. The NetEnt share declined steadily in 2017. In total, NetEnt lost about 15 percent.
Increase in turnover is disappointing
NetEnt generated turnover of 1,625 million Swedish kroner in 2017. That is converted about 163 million euros. That’s a growth of 11.7 percent and that is disappointing. A year earlier NetEnt grew 28.5 percent. In the years before even 33 and 35 percent. The 55 million euro profit that was booked is also barely more than the 50 million euro a year earlier.
Eriksson was allowed to explain the figures for the last time. He spoke about strengthening the position in regulated markets such as New Jersey, Spain, Italy, Denmark and the United Kingdom. He knows the disappointing growth in Australia, Poland and the Czech Republic. These are three markets where Netent had to withdraw for legal reasons.
Eriksson especially hopes that American states will legalize online gambling. This process is very difficult because (wealthy) owners of landbased casinos invest a lot of money in the lobby against favorable legislation for online casinos.
The challenge is mainly to get land-based players in the online casino.
Finn and the Swirly Spider
2017 starts nicely for NetEnt. In January NetEnt receives the prize for the best game provider of the year. The first release of the year, Divine Fortune, is also a great success. Players were again ready for a medium-size jackpot slot. NetEnt also has a new market: Mexico. NetEnt is working with Codere and with market leader Caliente. Later, NetEnt is also allowed to work in Serbia and the Canadian province of British Columbia.
Furthermore, NetEnt was fully committed to ‘rewards’. With Live Rewards, casinos can offer players extras while playing at the NetEnt gaming tables. NetEnt Engage does the same, but for online slot machines.
One of the most striking releases in 2017 is Planet of the Apes, based on the film series of the same name. Much was expected from Finn & the Swirly Spider. Finn should be one of the signs of NetEnt in addition to Jack (from Jack & the Beanstalk), which does not seem to succeed.
Hall of God
The jackpot bonus game from Hall of Gods!
How will NetEnt grow again like cabbage?
Because that is of course the ambition of NetEnt. NetEnt wants to grow in regulated markets. Europe is the absolute top priority here. NetEnt also expects a lot from Sweden. In 2018 the Swedes will regulate online gambling. Europe is closely followed by the United States. NetEnt already has a license in New Jersey and the application for a license runs in Pennsylvania. In the short term, NetEnt also hopes to do business in Nevada and Delaware.
For 2018 NetEnt wants to launch 20 new games. These games must be world-class and have something to suit every type of player. In 2018 NetEnt will include Jumanji, Narcos and Vikings, based on well-known films and television series.
The annual report has hardly had any influence on the share price of NetEnt. This rate rose by half a percent. There was not so much news in the annual report.