Digital casino solutions provider NetEnt is aiming to optimise its operations while applying for a licence in Pennsylvania and launching its games in British Columbia, Canada, later this year.
The Stockholm-listed firm’s first-quarter results have been adversely affected by increased costs and currency effects, in addition to a net negative effect of the phasing out of deliveries to unlicensed operators in Australia, Poland the Czech Republic last year.
Total revenues for the opening quarter of 2018 increased by 9.3 per cent to SEK430m (£36.25m), though costs increased due to extra staff in live casino and higher depreciation, attributable to newly launched products and currency effects.
The one-off severance pay to outgoing CEO Per Eriksson amounted to SEK6m (£0.51m) and excluding this, operating profits were up by 10.4 per cent to SEK140m (£11.8m), with a margin of 32.5 per cent.
Cash flow for the period was SEK158m (£13.32m) and last month, NetEnt initiated measures to improve margins including action to reduce costs.
“We saw overall solid performance in locally regulated markets and a key contributor to growth was the Italian market,” said NetEnt’s acting president and CEO Therese Hillman.
“Regarding North America, we recently decided to apply for a license in Pennsylvania and intend to launch our games with British Columbia Lottery Corporation in British Columbia (Canada) in the third quarter.
“For the remainder of the year, we see conditions for better growth, supported primarily by regulated markets, more new games and new customers. We continue to work on optimising the organization and to make sure that revenues grow more than costs.”
NetEnt’s nominating committee is to propose Fredrik Erbing be elected as the new chairman of the board. Erbing has been on the board at the firm since 2008, is a member of the audit committee and is vice president at Acando AB.
