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Today, July 13, 2018, at 9.00 a.m. the interim report will be presented by CEO Therese Hillman live via a combined telephone conference and webcast. The presentation can be followed in real-time on NetEnt’s website, the link to the webcast is: https://tv.streamfabriken.com/netent-q2-2018
The dial-in number for the telephone conference is:
Sweden: +46 8 506 39549
UK: +44 20 30089802
Quote from Therese Hillman, Group CEO:
”During the quarter, we came up with a plan and started taking action in several areas to strengthen our customer offering, cut lead times, and free up resources for new commercial projects. These changes are necessary for us to reassert our strong market position in online casino. I look forward to a busy autumn, focused on the turnaround of NetEnt, with improved efficiency and many new products and growth initiatives that all have players and customers in focus.”
Second quarter 2018:
- Revenues for the second quarter amounted to SEK 437 (413) million
- EBITDA amounted to SEK 202 (187) million, a margin of 46.3 (45.2)%
- Operating profit (EBIT) amounted to SEK 149 (147) million, a margin of 34.0
- Profit after tax of SEK 139 (136) million
- Earnings per share of SEK 0.58 (0.57) before and after dilution
- 8 (6) new customer agreements signed, and 7 (8) new customers’ casinos
First half-year 2018:
- Revenues for the first half-year amounted to SEK 867 (806) million
- EBITDA amounted to SEK 384 (350) million, a margin of 44.3 (43.5)%
- Operating profit (EBIT) amounted to SEK 283 (274) million, a margin of 32.6 (34.0)%
- Profit after tax of SEK 285 (251) million
- Earnings per share of SEK 1.19 (1.04) before and after dilution
- 14 (21) new customer agreements signed, and 15 (14) new customers’ casinos launched
Important events in the second quarter:
- The AGM elected Fredrik Erbing as new Chairman of the Board of Directors
- The Board appointed Therese Hillman as new CEO
- Five new slot games released, including Archangels Salvation, Lost Relics and Jumanji
- Beta-launched slot games for Social Casino
- Signed customer agreement with Hard Rock in New Jersey
Comments by Therese Hillman, Group CEO:
“Revenues for NetEnt increased by 5.9 percent (-0.8 percent in euro) to SEK 437 million in the second quarter of 2018. The operating profit (EBIT) increased by 1.2 percent to SEK 149 million, representing a margin of 34.0 (35.6) percent. Cash flow after investments increased by 35.8 percent to SEK 178 (131) million in the quarter.
We continue to see that our core markets in the Nordics and the UK are maturing, and competition has increased. During the quarter, we came up with a plan and started taking action in several areas to strengthen our customer offering, cut lead times, and free up resources for new commercial projects. These changes are necessary for us to reassert our strong market position in online casino. At the same time, we continue to review our cost structure to improve scalability across the business, and we have started to see a lower pace of cost growth. We continue to target higher revenue growth than cost growth.
At the beginning of June, the Swedish parliament approved the new gambling law, and our preparations ahead of the Swedish market re-regulation has intensified since then. We aim to have a broad selection of our games certified when the new licensing system starts on January 1, 2019 and work closely with our customers on all fronts to ensure a successful market entry right from the start.
We released five new slot games in the quarter: Archangels Salvation, Lost Relics, Jumanji, Witchcraft Academy and Bollywood Story. The latter two titles had previously been customer-exclusive and were released to the rest of our customers in June. The innovative game Jumanji combines slots and board game features and has been well received by players. So far, three weeks since its launch, it is our best game release this year.
I also follow the development of our upcoming new games with great interest. Among other things, we will present a new game concept with the launch of BerryBurst in August, which is based on player feedback and insights. A new initiative is the beta-launch of our games in the form of Social Casino games on Facebook, which in the longer-term perspective could add new revenues and strengthen our game brands with players on many different markets. Through this initiative, we capitalize on our existing digital assets.
With regards to Live Casino, the new product called Live Beyond Live was launched on desktop for Mr Green at the end of May, and since that we have noticed a steady increase in number of players, bets and gamewin. Just in time for the FIFA World Cup, we introduced a new type of functionality for Live Casino, called Sports Betting Widget, which allows players to place bets on sports without leaving the roulette table. As a first step, the feature has been rolled out to a handful of customers. We see good demand for our bespoke, virtual multi-table solutions – Live Beyond Live being the first such product – and expect to launch new customer-exclusive tables for several customers this year.
Regionally, we saw similar developments as in the first quarter. Growth in locally regulated markets continued at a high pace, especially in Southern and Eastern Europe, while overall revenue growth was negatively impacted by a weaker development in the Nordics and in the UK. The share of revenues from locally regulated markets was 36 (32) percent in the quarter. In the US, we now see some positive signs after the Supreme Court decision in May that paves the way for sports betting to be legalized in New Jersey and other US states. Thanks to our presence in New Jersey, we are in a good position to enter other US states if and when they open for online casino.
Mobile games continued to contribute to our growth and accounted for 58 (56) percent of total gamewin in the quarter. Our ambition is to offer the best mobile games for the online casino market, and therefore we were really pleased to win the award in the category called Innovation in Mobile at the EGR B2B Awards in June.
I look forward to a busy autumn focused on the turnaround of NetEnt, with improved efficiency and many new products and growth initiatives that all have players and customers in focus. Presentation of interim report.”
For additional information please contact:
Phone: +46 8 5785 4500
This information is information that NetEnt AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 7:30 CET on July 13, 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 more than 1,000 people in Malta, Stockholm, Gothenburg, Gibraltar, Kiev, Krakow and New Jersey. For more information, please visit
Source: Gambling Industry Press Releases
iLUCKI makes debut on SoftSwiss’ platform
Keen to use the technical know-how of SoftSwiss, combined with their profound experience and insightful knowledge of igaming, the team behind the brand is poised to give it their all to entertain players using the best that technology can offer.
A brief glance at the website distinguishes iLUCKI for its breakout layout and game navigation filters with user experience at the very core.
Advanced or simple – the player decides whether they wish to search for their favourite games with simplified filter options to browse through the entire offering or narrow in on that one game they desire most with pinpoint precision.
The smart filter includes search by number of reels and paylines, as well volatility, hit rate and more. It can be easily activated using an elegant switch found on the navigation menu.
Speaking of favourites, players have the freedom to tag their games into a “Favourite” category, so that no time is spent finding their preferred slots. For those wishing to try their luck at something unexplored, iLucki encourages to try its random slot selector.
What is more, the player-oriented brand rolls out a solid library of the top game providers such as NetEnt, Yggdrasil, Microgaming, Play’n GO, NYX and a plethora of other popular game providers. Thanks to the SoftSwiss Game Aggregator, iLucki establishes a vast portfolio of over 40 game brands.
Crypto-lovers will enjoy the ability to play games supporting their coin of choice, whether it is Bitcoin, Bitcoin Cash, Ethereum, Etherium Classic, Litecoin, Dogecoin or Monero.
Support of cryptopayments is brought to iLucki through CoinsPaid, SoftSwiss’ long-term partner in cryptopayments, offering high-end security and speedy transactions.
Anyone looking for the more traditional payment methods, will be satisfied by the abundance of such options for deposits and cashouts as Visa, Mastercard and Maestro, plus Skrill, Neteller, Zimpler, Yandex Money, Qiwi, Sofort, Paysafecard, ecoPayz and more.
The cutting-edge SoftSwiss Bonus Engine allows iLucki to present one of the most diverse and choice-rich promotional systems to date. This comes in the form of several first deposit bonuses, weekend wager free cashback events, high roller bonuses, weekday freespins and a colourful playlist of daily tournaments with local prize pools.
iLUCKI is passionate to become a top rated and player-favourite online casino through quality service, innovative ideas and bespoke promotions.
The complementary affiliates section of the website utilises the in-house affiliate system, developed by SoftSwiss to bring added flexibility to both operators and affiliates alike.
A comprehensive configuration of affiliate commissions, sub-affiliates and billing periods is supplied to the operator, all the while keeping affiliates in the loop on the latest news and exclusive promotional content.
As iLUCKi’s motto goes: “We speak casino. We are casino!” players can have peace of mind and rest assured that their satisfaction is iLucki’s top priority.
SoftSwiss is overwhelmingly happy to introduce iLucki to the growing roster of cutting-edge casino brands utilising its proprietary casino and affiliate platform.
Source: Gambling Industry Press Releases
New deal agreed between SoftGamings and EGT Interactive
AUGUST 2018, VALETTA/MALTA, RIGA/LATVIA: Today SoftGamings and EGT Interactive announced partnership, which includes providing the EGT Interactive gaming content on the SoftGamings platform.
SoftGamings is a platform developer, gaming aggregator and i-gaming services provider with over 10 years of experience in the industry. The company’s game providers’ suite is regularly enriched with recognised titles, such as EGT this August.
EGT Interactive brings the 15 years of experience of the EGT’s land-based casino slots to the world of online casino games. More than 150 games are known worldwide in more than 85 countries.
EGT Interactive offers several kinds of game types – slots, table games, card games, Keno and jackpot games. They are available in both desktop and mobile.
The most popularity seem to be enjoyed by EGT classic slots, such as 40 Super Hot, Burning Hot and Extra Stars. All titles feature traditional design with fruit symbols, as it was in the beginning of the slot machine era. There is no ‘Spin’ or similar button – instead of it a player has to press the button with an exact amount of bet, which can be chosen each time new.
Apart from slots, EGT Interactive offers 2 kinds of table games – European Roulette and Lucky Circle, Card games – Four of a Kind Bonus Poker, Joker Poker and Jacks and Better Poker, and also Keno Universe.
The EGT Interactive jackpot is a multilevel system, where every level is marked with a different card suit. The jackpot cards bonus is randomly triggered after a single game is finished.
The EGT Interactive gaming content is already available for integration from the SoftGamings feature-rich platform. Casino operators can add this software to their casino environments via single unified API.
Irina Sazonova, Director of Partnerships at SoftGamings says: ‘I am happy about our new cooperation with the EGT Interactive. It is a recognised provider, which produces a really quality content, which perfectly suits our Slots Bundle and Casino Games Integration offerings.’
As an aggregator, SoftGamings offers several ways of acquiring games – Slots Bundle, Live Casino Bundle and Casino Games Integration. EGT Interactive content is available as a part of Slots Bundle – a package of the best slot providers in the i-gaming industry. It can also be integrated separately or pick up several more providers at operator’s wish.
About EGT Interactive:
EGT Interactive is a Bulgaria-based gaming provider that brings the 15 years of experience of the EGT’s land-based casino slots to the world of online casino games. The company is growing rapidly through constant innovation, consumer-centric approach and top-notch support. Every single aspect of the company’s products is designed in line with the customer needs. The EGT games are based on an attractive Return-to-Player (RTP) strategy, which has proven to increase the player lifetime value.
SoftGamings is a B2B casino platforms provider and gaming systems aggregator. With over 10 years of experience in the industry, SoftGamings provides solutions demanded in the market and develops its own creative solutions – White Label, Turnkey, Self-Service, Bitcoin platform solutions, Bonus System Standalone feature, Sportsbook solution, Slots Bundle, Live Bundle and Casino Games Integration. SoftGamings’ strong IT team can also provide gamification possibilities, which is one of the major industry trends. Products portfolio includes 40+ gaming suppliers with 3000+ games. The company offers live dealer solutions from Evolution Gaming, NetEnt, Ezugi, Authentic Gaming, Lucky Streak etc, slots from NetEnt, Microgaming, BetSoft, Endorphina, Habanero, Booming Games, WorldMatch etc, sportsbook, hosting, licensing and banking services. Over 100 clients use SoftGamings products and services since 2007.
Source: Gambling Industry Press Releases
Yggdrasil Q2 2018 Update
Business highlights Q2 2018 (Q2 2017)
- 13 new licence agreements signed (12)
- 5 new games launched including first Table Game “Sonya Blackjack” (3)
- 2 gaming studios signed with YGS Masters
- Number of FTEs 243 (134)
- Yggdrasil partners with Nitro Circus for first ever branded game
- Yggdrasil awarded “Innovation in RNG Casino Software” at the EGR B2B Awards
- Player rounds increased by 66% to 1,328 million (801)
- Mobile share of EGW was 62% (56%)
Financial highlights Q2 2018 (Q2 2017)
- Total operating revenues increased by 65% to MSEK 66.7 (40.4)
- EBIT increased by 8% to MSEK 16.6 (15.3)
- EBIT margin amounted to 24.9% (37.9%)
Financial highlights H1 2018 (H1 2017)
- Total operating revenues increased by 67% to MSEK 124.3 (73.7)
- EBIT increased by 17% to MSEK 30.4 (26.0)
- EBIT margin amounted to 24.5% (35.3%)
Notable events after the quarter
- Signed with 888, Intralot and Tipsport. The signing with Tipsport allows Yggdrasil to enter into the Czech Republic market and partner with the leading Czech operator
- Launch of casino games fan site (yggdrasilcasino.com)
Comment on Q2 2018 by founder and CEO Fredrik Elmqvist
“Yggdrasil is once again able to present another eventful quarter characterised by strong growth and further expansion. Player rounds increased by 66% from the second quarter last year and revenues reached MSEK 66,7, representing an uptick of 65%. During the quarter we intensified our investment phase focusing on the organization, product and business verticals, yielding a profitability of as measured by EBIT of MSEK 16,6 and a 25% margin.
The second quarter has been active with the launch of Sonya Blackjack, the first game out in our new product vertical Table Games, including our ground-breaking motion capture technology and in-house proprietary client framework platform. We have also had a flying start for our YGS Masters programme and announced partnerships with two independent gaming studios. I look forward to welcoming additional world-class studios on a selective basis for strategic and mutually beneficial partnerships.
We have also launched a number of new blockbuster titles including Vikings Go To Hell, the third game in the highly appreciated Vikings series, and most recently Tut’s Twister. I am immensely proud of the achievements made by the team and for the continued strong demand among both operators and end players. In addition, our strong market position has been further underlined by receiving the prestigious “Innovation in RNG Casino Software” award at the EGR B2B Awards in June.
On the back of the second quarter performance I am excited by the opportunities lying ahead and believe conditions to be right for Yggdrasil to capture additional market share going forwards. We will continue to put full emphasis on growth and further quality enhancement initiatives targeting both our products and the business, ultimately paving the way for the future for the Yggdrasil Group.”
Fredrik Elmqvist, Malta, August 2018
Yggdrasil is a provider of superior online gaming solutions for igaming operators. The business was founded in 2013 and has since emerged as one of the industry’s most respected and acclaimed suppliers. The business model is highly scalable and covers three product verticals: Casino Slots, Table Games and Bingo, in addition to the business verticals: Yggdrasil White Label Studios, YGS Masters and Yggdrasil Dragons. Since its inception, Yggdrasil has embarked on a solid growth trajectory enabled by a strong corporate culture focused on innovation, creativity, quality and technology leadership. Yggdrasil is headquartered in Sweden and has offices in Malta (operational HQ), Poland and Gibraltar.
Source: Gambling Industry Press Releases
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