Interim report Q2 2016 - NetEntInterim report Q2 2016 July 14, 2016 Agenda Q2 highlights Financial...
Transcript of Interim report Q2 2016 - NetEntInterim report Q2 2016 July 14, 2016 Agenda Q2 highlights Financial...
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Interim report Q2 2016 July 14, 2016
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Agenda
Q2 highlights
Financial update Product update
Outlook Q&A
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12 new license agreements were signed, including Rank Group in the UK
6 new customers’ casinos were launched, including Tropicana in New Jersey, USA
Gaming license obtained in Romania
Success for NetEnt at the eGR B2B Awards
Share split 6:1 and 320 SEKm distributed to shareholders through redemption program
Report Highlights Q2 2016
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Revenues +29.8% y-o-y to 352 SEKm
Revenues +30.2% y-o-y in EUR
EBIT +32.1% y-o-y to 122 SEKm
EBIT margin of 34.8% (34.2%)
Revenues & Operating Profit by Quarter
205 217
241 258
271 280
323 345 352
0
50
100
150
200
250
300
350
400
Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16
SEKm
Revenues Operating profit
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Game Transactions by Quarter
8.8 Bln transactions
+36.2% y-o-y
5,1 5,2
6,1 6,5 6,5 6,6
8,2 8,9 8,8
0,0
1,0
2,0
3,0
4,0
5,0
6,0
7,0
8,0
9,0
Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16
Bln
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Revenues of 1,300 SEKm
EBIT of 478 SEKm
EBIT margin of 36.7%
Revenues & Operating Profit Rolling L12M
727 791
852 922
988 1 050
1 132 1 219
1 300
0
200
400
600
800
1 000
1 200
1 400
Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16
SEKm
Revenues Operating profit
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Costs & Investments by Quarter
Total costs +5.7% q-o-q
Personnel costs +7.2%
Other costs +6.0%
Investments +38.8%
SEKm
0
40
80
120
160
200
240
Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16
Depreciation Other expenses Personnel Investments, intangible assets Total investments
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L12M free cash flow of 355 SEKm
Net cash of 275 SEKm at 30/06/2016
Free Cash Flow Last 12 Months
Cash flow after investments, last rolling 12 months
196
240 244 271 272
290
338 350 355
0
60
120
180
240
300
360
Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16
SEKm
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Mobile Growth
Mobile share of NetEnt gamewin
0%
5%
10%
15%
20%
25%
30%
35%
40%
Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16
37%
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Note: Gamewin split as per Q2, 2016. Previous quarter in paranthesis.
Gamewin Breakdown by Product
SLOTS 88% (88%)
ROULETTE 6% (6%)
BLACKJACK 4% (4%)
VIDEO POKER 1% (1%)
OTHER GAMES 1% (1%)
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Synced releases on desktop and mobile
Available on iOS, Android and Windows Phone
Game Releases
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Future Outlook
31 new customers yet to launch as per end of Q2
Good conditions for continued strong growth and profitability
Growth drivers
UK, mobile, Live Casino, North America
Long term: Asia, Retail, Latin America
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Certain statements in this presentation are forward looking and the actual outcomes may be materially different. In addition to the factors discussed, other factors could have an impact on actual outcomes. Such factors include developments for customers, competitors, the impact of economic and market conditions, national and international legislation and regulations, fiscal regulations, the effectiveness of copyright for computer systems, technological developments, fluctuations in exchange rates and interest rates, and political risks.