NetEnt Grows Despite ChallengesHarry Coulter | 12 Apr 2018
NetEnt may have been sailing full-on into the winds of change in 2018 by giving CEO Per Eriksson the boot a short while ago, but the gambling software giant still managed to positively report on 2017. The company recently released its yearly financial statements for 2017, showing a solid year as far as operational profits and steady growth are concerned.
Overall growth for 2017 is reported at a very steady and positive 11.7% for the year. Despite the fact that overall growth is down by 28.5% when compared to the prevailing fiscal situation in 2016, NetEnt still managed to out-do growth-rate of the bigger European market by a landslide.
Despite having had to face operational management changes and uncertainty, overall revenue is on the rise, having increased from SEK 1,455.1m (2016) to SEK 1,625m in 2017.
Becoming A Market Leader
NetEnt’s Chief Financial Officer, Therese Hillman, who is also currently the acting CEO for the company until such time as a new CEO is appointed, said that NetEnt had set the goal of growing faster that surrounding market averages firmly within its sights and that driving the development of the casino digital gaming market was a priority. Hillman confirmed that by following the rule of thumb of outgrowing other regulated markets, NetEnt had ensured good and steady cash flows as well as increased revenue income.
The increased profits generated by NetEnt’s operations can be credited to the company having exited certain international gaming markets as a result of regulatory uncertainties. Instead, the company has opted to enter steadier markets like Mexico in North America as well as Serbia and Croatia in the European markets.
The company has also ceased to provide casino software to countries like Australia and Poland. These markets have shown a negative growth in revenue due to many regulatory challenges.
Balance The Key To Growth
NetEnt Chief Commercial Officer, Bjorn Krantz, has spoken his own mind about the gambling industry heading towards more regulation. Krantz said that the secret to continuous growth would be to perform a balancing act between keeping a scalable international business model combined with keeping the company’s finger on the pulse of the challenges faced by local markets.
NetEnt has also actively pledged to improve ratios of gender equality within the company’s ranks, aiming to reach a 50/50 ratio by the end of 2020. Considering the current 61/39 ratio, the company is well on its way towards achieving this particular goal.