There’s been a change in the ranks at NetEnt. Indeed, they have just appointed a new Chairman of the Board, Frederik Erbing at their Annual General Meeting (AGM). However, not only this, but they also re-elected him as a board member. Erbing has reprised this role alongside fellow board veterans Pontus Lindwall, Peter Hamberg and Maria Redlin. Furthermore, joining Erbing around the decision table are also three new members.
Working alongside Erbing is Pontus Lindwall. As you may know, Mr Lindwall originally founded NetEnt and is one of the main shareholders, with 4,100,000 class B shares. However, it wasn’t just new people joining in. During the AGM, NetEnt also announced that they would release Therese Hillman, Board of Directors and CEO from the liability for the financial year 2018.
Initially, NetEnt named Hillman as the CEO last year, as the supplier’s financial results failed to meet expectations. Which indicates one important thing, NetEnt is looking forward. Plus, they’re looking for new ways to dig themselves out of the hole, instead of blaming someone, as the competition increases.
Many iGaming content providers have struggled recently, and this has also affected NetEnt. All and all, the slot game provider saw revenue YoY decrease by 3% to £34,3 Million. Meanwhile, it saw the operating profit drop 6% to £10,3 Million. Overall, the company had net profits fall a worrying 18%, down to £9,8 Million.
The reason for this downfall is clear. When discussing the issues, Hillman stated that the Nordic countries accounted for almost the entire slowdown. She went on to say. “This is mainly due to lower volumes in Sweden as the new regulation was introduced at the start of the year.”
Unfortunately, the new rules are proving problematic to most companies operating in Nordic regions and the impact where higher than most could predict. As such, it translates to lower revenue per player. Hopefully, this is just a dip, and the only way is up for NetEnt.