year-end report 2017 - netent · year-end report. 2017. february 15, 2018. agenda q4 highlights...

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Year-end report 2017 February 15, 2018

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Page 1: Year-end report 2017 - NetEnt · Year-end report. 2017. February 15, 2018. Agenda Q4 highlights Financial update Product update Outlook Q&A. ... Anna Romboli Created Date:

Year-end report2017

February 15, 2018

Page 2: Year-end report 2017 - NetEnt · Year-end report. 2017. February 15, 2018. Agenda Q4 highlights Financial update Product update Outlook Q&A. ... Anna Romboli Created Date:

Agenda

Q4 highlights Financial update Product update Outlook Q&A

Page 3: Year-end report 2017 - NetEnt · Year-end report. 2017. February 15, 2018. Agenda Q4 highlights Financial update Product update Outlook Q&A. ... Anna Romboli Created Date:

Key eventsQ4 2017

New customers: 8 signed and 11 launched

Customer agreement signed with Caliente in Mexico

New digital marketing service launched together with Ve Global

Mobile Black Jack for Live Casino was launched

Page 4: Year-end report 2017 - NetEnt · Year-end report. 2017. February 15, 2018. Agenda Q4 highlights Financial update Product update Outlook Q&A. ... Anna Romboli Created Date:

Revenues & Operating Profit by Quarter

Revenues +4.7% y-o-y in SEK

Revenues +4.2% y-o-y in EUR

EBIT -3.9% y-o-y

EBIT margin of 35.8% (39.0%)

323345 352 357

400 398 407 401419

0

50

100

150

200

250

300

350

400

450

Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17

SEKm

Revenues Operating profit

150

Page 5: Year-end report 2017 - NetEnt · Year-end report. 2017. February 15, 2018. Agenda Q4 highlights Financial update Product update Outlook Q&A. ... Anna Romboli Created Date:

Revenues & Operating Profit FY 2017

Revenues +11.7% y-o-y

EBIT +9.5% y-o-y

EBIT margin of 36.1% (36.8%)

631

852

1 132

1 455

1 625

0

200

400

600

800

1 000

1 200

1 400

1 600

1 800

2013 2014 2015 2016 2017

SEKm Revenues and operating profit in the past five years

Revenues Operating profit

587

Page 6: Year-end report 2017 - NetEnt · Year-end report. 2017. February 15, 2018. Agenda Q4 highlights Financial update Product update Outlook Q&A. ... Anna Romboli Created Date:

Game Transactions by Quarter

A record of 11.2 billion transactions

+18.1% y-o-y

Bn

8,2

8,9 8,8 8,6

9,59,8 10,1 10,2

11,2

0

2

4

6

8

10

12

Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17

Page 7: Year-end report 2017 - NetEnt · Year-end report. 2017. February 15, 2018. Agenda Q4 highlights Financial update Product update Outlook Q&A. ... Anna Romboli Created Date:

Costs & Investments by Quarter

Total costs +10.2% y-o-y

Personnel costs +14.3% y-o-y

Other costs +4.6% y-o-y

Total investments -19.8% y-o-y

0

40

80

120

160

200

240

280

320

Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17D&A Other expenses Personnel Investments, intangibles Total investments

SEKm

Page 8: Year-end report 2017 - NetEnt · Year-end report. 2017. February 15, 2018. Agenda Q4 highlights Financial update Product update Outlook Q&A. ... Anna Romboli Created Date:

Mobile Growth

0%

10%

20%

30%

40%

50%

60%

Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17

54%

Mobile share of NetEnt gamewin

Page 9: Year-end report 2017 - NetEnt · Year-end report. 2017. February 15, 2018. Agenda Q4 highlights Financial update Product update Outlook Q&A. ... Anna Romboli Created Date:

Note: Gamewin split as per Q4, 2017. Previous quarter in parenthesis.

SLOTS90% (90%)

TABLEGAMES9% (9%)

OTHER GAMES1% (1%)

Gamewin Breakdownby Product

Page 10: Year-end report 2017 - NetEnt · Year-end report. 2017. February 15, 2018. Agenda Q4 highlights Financial update Product update Outlook Q&A. ... Anna Romboli Created Date:

114

244

338

390423

0

60

120

180

240

300

360

420

480

2013 2014 2015 2016 2017

SEKm

Cash flow after investments, last five years

Free Cash FlowLast Five Years

Free cash flow grew by 8.4% in 2017 to 423 SEKm for FY 2017

Net cash position of 387 (495) SEKm at year-end 2017

Proposed cash distribution to shareholders of 540 SEKm(2.25/share)

Page 11: Year-end report 2017 - NetEnt · Year-end report. 2017. February 15, 2018. Agenda Q4 highlights Financial update Product update Outlook Q&A. ... Anna Romboli Created Date:

Game ReleasesQ4 2017

Page 12: Year-end report 2017 - NetEnt · Year-end report. 2017. February 15, 2018. Agenda Q4 highlights Financial update Product update Outlook Q&A. ... Anna Romboli Created Date:

News from ICEBranded Games

Page 13: Year-end report 2017 - NetEnt · Year-end report. 2017. February 15, 2018. Agenda Q4 highlights Financial update Product update Outlook Q&A. ... Anna Romboli Created Date:

News from ICEFirst VR Game

Page 14: Year-end report 2017 - NetEnt · Year-end report. 2017. February 15, 2018. Agenda Q4 highlights Financial update Product update Outlook Q&A. ... Anna Romboli Created Date:

News from ICELive Beyond Live

Page 15: Year-end report 2017 - NetEnt · Year-end report. 2017. February 15, 2018. Agenda Q4 highlights Financial update Product update Outlook Q&A. ... Anna Romboli Created Date:

Future Outlook

Growth drivers 2018: 20 new games, regulated markets, mobile,

30 new customers to be launched

Long term: Asia, Live Casino, Retail, Americas, Programmatic service

Page 16: Year-end report 2017 - NetEnt · Year-end report. 2017. February 15, 2018. Agenda Q4 highlights Financial update Product update Outlook Q&A. ... Anna Romboli Created Date:
Page 17: Year-end report 2017 - NetEnt · Year-end report. 2017. February 15, 2018. Agenda Q4 highlights Financial update Product update Outlook Q&A. ... Anna Romboli Created Date: