Recently NetEnt released their financial numbers. And by the look of things, the former pack leader isn’t doing that well. The reason for not producing all positive numbers is apparently the new regulation in the Nordics, and more specifically, Sweden.
Although things are not that bad at NetEnt. The game provider still indicated a growth of 1.7% YOY in Q2 in regulated markets (excluding Sweden). In fact, 49% of the revenue for that period came from markets like the US, Portugal, Spain and the UK.
The recent report covered the beginning of the year, so January and included June 2019. And when comparing the results and including Sweden, NetEnt’s total revenue is 4.1% down. In monetary value, this translates into £73,7 Million down to £71.7 Million.
All and all, NetEnt reported a decline in users. But also a decrease in average revenue per user (ARPU). The fall is mainly due to the new regulation enforced in Sweden. But NetEnt, anticipated the drop in figures it seems. And to compensate for the revenue loss they’ve tightened up their belt, cut their personnel and operating costs too. Saving them £300,000 (from £49,7 Million previously down to £49,4 Million). Yet, the amortisation and depreciation which when up from £8,6 Million to £12 Million, didn’t help either.
Without a doubt, NetEnt is working very hard to keep a positive graph. It’s clear when looking at the numbers of new customer agreements signed (16). And also the numbers of new casino launched (19). NetEnt is putting the effort when comparing the numbers with the previous year (14 new customer agreements and 15 new casinos) in the same period. Yet the players are simply not given the provider as much love as they did before.
But Therese Hillman has a plan and confirmed a change of direction.
“Now, we take the next step in developing our technology platform as we are creating an open platform with new types of functionality. And aggregation of third-party content for operators.”
So, it seems that NetEnt too is piggybacking on the content aggregator trend that appears to have a ripple effect across the industry. But is it too late? Time will tell.