NetEnt CEO Per Eriksson

NetEnt Profits Surge on High Q1 Growth

29 Apr, 2016 - 08:40 by johntang

Online casino software developer NetEnt's business is surging as the online gambling industry continues to grow exponentially.

Founded in 1996, Sweden-based NetEnt has seen significant growth in the past few years. Even then, their quarterly report for the first quarter of 2016 is remarkable. The company reported a gross revenue increase of 33.7%, with an outstanding 56.6% increase in profits over the first quarter of the previous year. In numbers, total revenue for the quarter equaled 345 million SEK (£31 million) with profits increasing to 128 million SEK (£11 million).

Per Eriksson, CEO of NetEnt remarked, “We have had a strong start to the year with high growth in revenue, profits and cash flow. We have an exciting year ahead of us and I am positive about the future.”

NetEnt's rapid growth can be attributed to a few different factors. According to revenue figures, the company saw a large increase in user interaction with its games, echoing an industry-wide growth trend. In the first three months of the year, €8.9 billion was gambled on NetEnt games in casinos around the world.

Additionally, the company has seen success with the launch of its products on PokerStars in New Jersey, USA. Although the platform was only released in March, impact can already be seen in the Q1 results.

One other reason given for the increase in revenue is the January release of the Guns N Roses slot at various NetEnt casinos. Featuring cutting-edge graphics and superior sound, including five hits from the iconic rock band itself, this video slot has quickly become one of the most popular slots on the internet. According to Eriksson, in just a few short months, Guns N Roses has become, “our most successful game release by far.”