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NetEnt gaming company has put a 23.9% year after year increase in revenues during its first quarter. And this is primarily because of the growth within the US and UK gaming market. At the same notion, the online casino gaming provider highlighted that Sweden and Norway markets continue to perform under par.
The revenues for the past three months up to 31 March 2020 reached a total of SEK518.0m (£41.8m/€47.4m/$51.4m), up from SEK418m in the same period last year.
The NetEnt real money slot casino games are very much responsible for 90% of all of the online gaming revenues of the quarter compared to 10% from real money table games.
In the meantime, the UK biggest single gaming market contributes 19% of revenues way ahead of the Nordic region that is on 18%.
When it comes to business elsewhere, the majority of NetEnt revenues come from the rest of Europe. This is actually raking up 43% of the overall revenue in Q1, whilst the remainder 20% is coming from the rest of the world.
NetEnt Casino Gaming Provider Singled Out a Number of Markets
Even though NetEnt could not provide the exact figures for all individual countries, the Chief Executive of the gaming provider Theresa Hillman went on and single out a number of the market where it witnesses its growth.
“Most of the growth came from the US and the UK, while developments in Sweden and Norway continued to be negative,” Theresa Hillman said. Elsewhere, the locally regulated market went on and account 50% of the group gaming in the quarter.
“The largest locally regulated markets for the group were the UK (19% of gaming revenues), Italy (8%) and USA (7%). Sweden accounted for only 6% of gaming revenues, which is significantly lower than before the re-regulation of the Swedish market.”
However, NetEnt realised that its earnings were struck by SEK26.0m in restructuring costs that were related to the combination of Red Tiger in the previous month.
Conclusion
Above all, as the increase in spending exceeded revenue growth for Q1 this simply means that operating profits will surely drop 5.6% from the reported SEK126.1 during the first quarter of 2019. Nevertheless, NetEnt will remain customer well-being as they are going all out spreading their wings in offering top-notch online casino gaming.