Swedish iGaming giants suffer a financial blow in the Nordic region
NetEnt, a leading software supplier has experienced a decline in revenue in the second quarter of the year due to weak development in Nordic countries, primarily in Sweden.
The company has issued a report that shows a drop to SEK 419 million (€39.3m) from SEK 437 million (€41.4m) resulting in 3.4 % drop in income, namely, from SEK 867m (€82.1m) to SEK 837m (€79.3m).
The decline in numbers was definitely brought about by the changes in the gambling regulations in Sweden.
However, not all is dark and gloomy since the company’s revenue did rise by 1.7% in markets such as New Jersey, Eastern Europe, Spain and Portugal.
Therese Hillman, the group CEO of NetEnt, commented on this issue: “The weak development in the Nordic countries continued in the second quarter, particularly in Sweden, where we have seen fewer players and lower ARPU since the new regulation was introduced at the beginning of the year.”
Officials at NetEnt remain positive and optimistic with a plan to continue investing in “increased game production, and technical platform featuring more functionality.”
They also plan to concentrate more on the further development of the live dealer department, as a means to increase their market shares in all of their markets.
As for operating profit, the first half of the year saw about a total of SEK 256m (€24.3m), an almost 10% drop than the same period of the previous year. Furthermore, the number of game transactions came to 10.6bn in the second quarter, which is lower by 1.3% when compared to the second quarter of 2018.
Mobile games made up a 64% game win, with slots accountable for the majority of the figure with 91.8%.
“The transformation of live casino continues at full speed and we added several new functions during the quarter to make our product more competitive,” Hillman added.
With a positive response from customers, the company expects to see further growth in the months to come from this segment, “but it will take a few more quarters before we can see more meaningful revenues”.