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

Transcript of Interim report Q2 2016 - NetEntInterim report Q2 2016 July 14, 2016 Agenda Q2 highlights Financial...

Page 1: Interim report Q2 2016 - NetEntInterim report Q2 2016 July 14, 2016 Agenda Q2 highlights Financial update Product update Outlook Q&A 12 new license agreements were signed, including

Interim report Q2 2016 July 14, 2016

Page 2: Interim report Q2 2016 - NetEntInterim report Q2 2016 July 14, 2016 Agenda Q2 highlights Financial update Product update Outlook Q&A 12 new license agreements were signed, including

Agenda

Q2 highlights

Financial update Product update

Outlook Q&A

Page 3: Interim report Q2 2016 - NetEntInterim report Q2 2016 July 14, 2016 Agenda Q2 highlights Financial update Product update Outlook Q&A 12 new license agreements were signed, including

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

Page 4: Interim report Q2 2016 - NetEntInterim report Q2 2016 July 14, 2016 Agenda Q2 highlights Financial update Product update Outlook Q&A 12 new license agreements were signed, including

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

Page 5: Interim report Q2 2016 - NetEntInterim report Q2 2016 July 14, 2016 Agenda Q2 highlights Financial update Product update Outlook Q&A 12 new license agreements were signed, including

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

Page 6: Interim report Q2 2016 - NetEntInterim report Q2 2016 July 14, 2016 Agenda Q2 highlights Financial update Product update Outlook Q&A 12 new license agreements were signed, including

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

Page 7: Interim report Q2 2016 - NetEntInterim report Q2 2016 July 14, 2016 Agenda Q2 highlights Financial update Product update Outlook Q&A 12 new license agreements were signed, including

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

Page 8: Interim report Q2 2016 - NetEntInterim report Q2 2016 July 14, 2016 Agenda Q2 highlights Financial update Product update Outlook Q&A 12 new license agreements were signed, including

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

Page 9: Interim report Q2 2016 - NetEntInterim report Q2 2016 July 14, 2016 Agenda Q2 highlights Financial update Product update Outlook Q&A 12 new license agreements were signed, including

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%

Page 10: Interim report Q2 2016 - NetEntInterim report Q2 2016 July 14, 2016 Agenda Q2 highlights Financial update Product update Outlook Q&A 12 new license agreements were signed, including

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%)

Page 11: Interim report Q2 2016 - NetEntInterim report Q2 2016 July 14, 2016 Agenda Q2 highlights Financial update Product update Outlook Q&A 12 new license agreements were signed, including

Synced releases on desktop and mobile

Available on iOS, Android and Windows Phone

Game Releases

Page 12: Interim report Q2 2016 - NetEntInterim report Q2 2016 July 14, 2016 Agenda Q2 highlights Financial update Product update Outlook Q&A 12 new license agreements were signed, including

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

Page 13: Interim report Q2 2016 - NetEntInterim report Q2 2016 July 14, 2016 Agenda Q2 highlights Financial update Product update Outlook Q&A 12 new license agreements were signed, including
Page 14: Interim report Q2 2016 - NetEntInterim report Q2 2016 July 14, 2016 Agenda Q2 highlights Financial update Product update Outlook Q&A 12 new license agreements were signed, including

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.