Companies in the online gambling industries are developing strategies to grow in the expanding industry. Not to be left behind is Net Entertainment, the Swedish provider of online gambling software. The company supplies software to online casino operators. Their need to grow means that Net Entertainment will have to provide them with more games for both desktop and mobile as it is doing with Mr Green Casino.
NetEnt is expanding to North American market after its evaluation and monitoring of the market showed that it is the right time to enter the United States and Canada. Its plan is to start with licensing process in New Jersey and then later to other states and to go live the second half of 2015. Bjorn Krantz, the Malta managing director, will head the expansion. Enrico Bradamante who is currently the Deputy Head of operations in Malta will take his place.
On performance, NetEnt had an outstanding second quarter with a year-on-year increase in revenues of 38 %. Per Eriksson, the chief executive of the company said he is happy at the performance. He credited the growth to the strong development of the company’s customers, increased set up fees and strong currency.
During the announcement of the results, Ericksson gave information on the plans of the company to expand to the US and Canada. He also mentioned the deal of NetEnt with William Hill plc, of having online games in land based betting shops.
The second quarter results are:
- Revenues were SEK 205 million, an increase by 37.8 %.
- Operating profit at SEK 56.7 million a 46.6 % increase.
- Operating margin was 27.7
- Profit after tax of SEK 52.5 million.
During the quarter, 10 license agreements were signed with new customers and 13 online casinos were launched.
The first half results were:
- Revenues were SEK 393.4 million, an increase of 32.2 %
- Operating profit of SEK 107.9 million, 35.5 % increase.
- Operating margin was 27.4
- Profit after tax was SEK 98.6 million.
- During the quarter, 14 license agreements were signed with new customers and 15 online casinos were launched.
Other important events in the second quarter were:
- Agreement signed with rational group to deliver Full Tilt Poker.
- Agreement with William Hill on land based gaming.
- Launch of Sky Betting and Gaming and Bet365.
- Six agreements for mobile games delivery.
- Ten launches of mobile games
- Five agreements for live casino delivery
- Nine launches of live casino.
Mobile games revenues have improved by 13 % of the gross gaming income. Live casino is also growing with 27 customers launching in the second quarter compared to 18, which had launched in the first quarter.
Eriksson said that he was looking forward to the rest of the year in customer growth and in the large projects that were initiated. The projects introduced are the William Hill contract and the North America entry. He is also expecting the company to finalize the UK licensing and it is evaluating Spain regulation. At the same time, it is assessing Asian market opportunities.