NetEnt holds a capital markets day – presenting more financial information and a new product initiative
At today’s capital markets day, NetEnt’s CEO Therese Hillman and other senior executives will provide a business and strategy update and a market outlook for NetEnt. For the first time, the Company presents revenues by geographic region and by customer size class. Additionally, the estimated revenue impact from the upcoming Swedish gaming tax is given. Further, a new product within Social Casino is beta-launched today.
The future profitable growth of NetEnt is expected to come from existing and new customers, new products, services and distribution channels, as well as new geographic markets in Europe, North America and Asia.
CEO Therese Hillman comments: ”We have initiated changes to enable better execution of our strategy, focusing on cost control and new growth initiatives utilizing existing resources. Through a new, exciting product initiative we are now beta-launching a selection of our games on Facebook in the gaming form called Social Casino, which could generate new revenues in the mid- to longer-term perspective.”
Regulated markets form an important part of NetEnt’s growth strategy and the Company aims to be ready to operate on the re-regulated Swedish market from the expected start on January 1, 2019, given that the new regulation takes places according to the most recent proposal. NetEnt’s current total revenues will be negatively impacted by an estimated 2.5 percentage points due to the proposed new gaming tax in Sweden.
To increase knowledge about NetEnt’s business, the Company for the first time presents revenue split by geography. Based on player countries, NetEnt’s gamewin was split according to the following table below.
|Geography||Q1 2018||Q1 2017||FY 2017|
Based on customer size classes, NetEnt’s gamewin was split according to the following table below.
|Size class||Share of gamewin, 2017|
NetEnt reiterates its financial targets. NetEnt’s overall target is to further strengthen its market position, drive developments and grow faster than the market.
Also, NetEnt is targeting shareholder cash returns of at least 60 percent of profit after tax, subject to the company’s long-term capital requirement.
For additional information please contact:
Therese Hillman, CEO of NetEnt
Phone: +46 8 5785 4500
Roland Glasfors, Investor Relations & Corporate Strategy, NetEnt
Phone +46 760 024 863
This information is information that NetEnt AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 08:45 CET on May 22nd, 2018.
NetEnt AB (publ) is a leading digital entertainment company, providing premium gaming solutions to the world’s most successful online casino operators. Since its inception in 1996, NetEnt has been a true pioneer in driving the market with thrilling games powered by a cutting-edge platform. NetEnt is committed to helping customers stay ahead of the competition, is listed on NASDAQ Stockholm (NET–B) and employs 1,000 people in Malta, Stockholm, Kiev, Krakow, Gothenburg, Gibraltar and New Jersey. www.netent.com