NetEnt Signs New Penn Partner
After making inroads in the British Columbian market, Swedish iGaming giant NetEnt has now signed casino giant Penn as its first-ever partner in the US state of Pennsylvania. The exciting news has also come at the same time as the famed gaming supplier has announced a Jumanji-fueled boom in its Q3 financial results.
The game developer’s share prices rose almost 15% on the morning of October 25, when it revealed a 10% rise in its revenues to SEK449 million (around $49 million). NetEnt also reported an 11% increase in operating profits, which rose to more than $19 million for the three months ended in September 2018.
During the third quarter (which is also the first full fiscal period in which Therese Hillman has acted as CEO on a permanent basis) the Stockholm listed supplier cashed in on fantastic revenues thanks to the release of its new slot based on the smash hit film Jumanji. The company also launched with Canada’s British Columbia Lottery Corporation and Norway’s Norsk Tipping, and even signed its first customer in Lithuania of late.
Big Progress in North America
The expert iGaming company has also started to offer its titles on Hard Rock’s brand new New Jersey website, and has now also announced that it has inked its first customer for the soon-to-go-live Pennsylvanian market. The supplier’s games will be made available on the Penn Interactive Hollywood Casino website for real money play.
According to Managing Director of NetEnt Americas, Erik Nyman, the deal has marked the firm’s first customer signing in the state of Pennsylvania, and comes as a crucial step in its North American growth strategy.
The company confirmed last month that it had filed an application with the Pennsylvania Gaming Control Board (or PGCB) to supply online slots and table games to local operators. At the time, Nyman stated that he hopes his company will be live with its titles in the US state as soon as its market opens to the public.
Analysts Wary of Positive Results
NetEnt Group CEO Hillman also reflected on the positive Q3 results, highlighting many areas of improvement for her firm. She noted that it continues to lower its overheads and optimize organization for commercial drives and increased output pace, and she sees room for improvement in numerous key areas in 2019.
The CEO also added that the firm’s net cash position gives it newfound financial flexibility, which allows for continued, strong cash returns to all of its shareholders. And while the firm could celebrate all of its progress over the past quarter, analyst are regarding its growth with caution, saying that underlying growth slowed considerably in key areas like the UK and the Nordics.
Sweden, they have said, should be regarded with particular concern considering the upcoming launch of its re-regulated industry in January.