Net Entertainment expansion strategy pays off as Q1 profit jumps 60.9%

Online gambling software outfit Net Entertainment set new revenue and profit records in Q1 as the company reaped the benefits of its expansion strategy.

Revenue in the three months ending March 31 rose 37.1% to SEK 258.3m (US $30.9m) while operating profit jumped 59.8% to SEK 81.8m and profit after tax soared 60.9% to SEK 74.2m. Operating margin improved 4.5 points to 31.7%. Net Ent CEO Per Eriksson credited 2015’s strong start to the company’s “innovative gaming solutions as well as our strong expansion on new and existing markets.”

Net Ent says it handled 6.5b game transactions in Q1, up 30.8% from the same period last year. Mobile gaming nearly doubled to 20.6% of total game win. Net Ent says that as of Q2, all its new games for both desktop and mobile have been developed in HTML5, which will help realize synergies going forward.

The quarter brought 11 new customer agreements – including Denmark’s Danske Spil, Spain’s Codere and the UK’s Gamesys – and the launch of seven new customers’ casinos, most notably Full Tilt. The company has also gone live with since the quarter ended.