A 10% increase in affiliate revenue operations (up to SEK 48.6 million) has helped Net Gaming reach its financial targets for Q4 2018.
In what were largely positive quarterly results, the Scandinavian igaming firm also saw revenue increase to SEK 48.7 million (up from SEK 45.6 million), EBITDA increase to SEK 33.9 million (up from SEK 30 million) and cash flow from operating activities rise to SEK 33.6 million (up from SEK 32.8 million). Less positive was a decline in profit after tax, which fell from SEK 21.9 million to SEK 15.7 million.
CEO Marcus Teilman explained: “During Q4, we continued to systematically conduct activities in line with our growth strategy. In the US, we continue to build up our long-term assets, and revenue increased by 45%. The number of states wanting to regulate iGaming is increasing, although the exact timing for regulation by additional states is difficult to assess.
“We continue to develop our new Betting vertical and we expect it to be able to make a clear contribution to our revenues and earnings over time. Within Casino, we already have a strong portfolio of digital brands that generate high revenue growth, and we are convinced that we can continue to grow our revenues in Europe. Launches in January 2019 included new Casino brands in the UK and Germany and a new Betting brand in Germany.”
Net Gaming also outlined some plans for 2019:
- In line with our strategy of developing strong digital brands, we will place an increased focus on design, conversion and user-friendliness.
- We will further develop and strengthen our organisation by recruiting carefully selected key individuals who fit in well with our corporate culture.
- Careful cost control combined with further efficiency measures will continue to be important to us, while we will also invest in important growth projects.
- New regulations, economic developments and currency effects will always be difficult to predict and can create short-term volatility, but a leading player like Net Gaming is well-placed to manage this over time.