The History Behind the Success of NetEnt
The company was first formed in 1996, in Stockholm, Sweden. This Scandinavian capital city may have seemed at the time to be an unlikely place to build a technology company of worldwide repute, but the birth of the internet meant that location hardly mattered any more. The company developed slowly at first, but soon its innovative approach and startlingly impressive software enabled it to build a globally renowned reputation.
NetEnt quietly constructed a considerable games portfolio, before announcing itself to a worldwide audience by launching its first online casino in 2002. This successful development enabled the company to declare its first annual profit the following year. By 2007, NetEnt had gone public, offering investors the opportunity to buy a stake in the company in an Initial Public Share Offering (IPO). This was very popular, and in 2009 the company received a full listing on the main Stockholm Stock Exchange.
2010 saw the launch of what remains an iconic example of the company’s outstanding output. Gonzo’s Quest, a humorous and brilliantly realised tale of a hapless Spanish conquistador searching for treasure in the Central American jungle, remains one of the most popular slots to this day – a remarkable feat in the fast moving world of online gaming.
NetEnt’s first mobile compatible game was developed and launched in 2011. Again, the company was well ahead of its time, as casino players began to switch from playing games on static desktop PCs and Macs to mobile Wi-Fi enabled devices like smartphones and tablets. Today, the vast majority of online gaming is played on mobile devices.
In 2013, several more mobile games reached the market. Equally important was the first appearance of NetEnt’s live casino games. These enabled players of more traditional casino games like Blackjack, Poker and Roulette to enjoy playing live real-time games with live dealers from the comfort of their home PC or Mac. Mobile live casino followed three years later.
A further step on the journey toward everyday mobile gaming came in 2014, when NetEnt adopted the new HTML5 software standard for software development. This new programming protocol enabled games to be played on both desktop and mobile without the need for a complete software re-design for each type of device. The company’s superb games and ever increasing numbers of agreements with casino operators caused a rapid rise in revenues: so much so that by the end of the year, the company was valued at over €1 billion.
Recent years have seen the company continue to grow at a rapid rate. Today, NetEnt’s games are enjoyed by players across the globe. Licencing agreements have been signed with casino operators all over the world, enabling their games to be played in the vast majority of countries across the planet.
Where are NetEnt Today?
At the time of writing, NetEnt have developed well over 200 different games, with both slots and table games enjoyed by millions of players worldwide. In addition to the evergreen Gonzo, the company has designed hundreds more immensely popular slots. Starburst,
released around a decade ago in 2012, remains one of the favourites. Other top titles in NetEnt’s vast portfolio include the enchantingly beautiful Butterfly Staxx and Lights; the B movie detective themed Jack Hammer; the Mexican village based Spinata Grande and the multi-million pound pay out progressive jackpot game Mega Fortune.
NetEnt are also renowned for their superb fully licenced games featuring iconic musicians. Always including original music, licenced stars include Jimi Hendrix, Guns ‘n’ Roses, Motorhead and Ozzy Osbourne.
The company’s standard video format table games are also a regular on Betable casinos, while its live dealer games are live streamed from the company’s purpose built studios. NetEnt remains one of the two major providers of live casino games worldwide.
Financially, NetEnt are still in great shape. If you had been far-sighted enough to have bought £1000 worth (in Swedish krona) of the company’s shares at its original IPO launch in 2007, you would have received over £100,000 in total returns over the years (including their current value and regular dividends).
The year end 2019 Financial Report (the last year for which figures are available at the time of writing) shows total revenues of well over £140 million (around SEK1800 million). Earnings before tax came in at just below £48 million (around SEK600 million).
These figures, whilst impressive, also indicate that the rapid growth seen by the online casino industry may be slowing somewhat. The 2019 figures represent a growth rate over the previous year of just 0.6%, which is sluggish compared to performance in recent years.
Nevertheless, operating profit margins remain healthy at just under 30%, and the company is optimistic about its future prospects. NetEnt CEO Therese Hillman is particularly confident, believing that the company’s 10% increase in revenues in the fourth quarter point to a further upturn in fortunes. The number of players using the company’s live casino games has reached an all-time high, and further spectacular game launches are expected in the near future. The company’s vast gaming systems now handle almost 50 billion gaming transactions every year.
Meanwhile, the company’s worldwide operations continue to expand. NetEnt has offices in the United Kingdom, the United States, Ukraine, Poland, Gibraltar and Malta in addition to its headquarters, which remain in Stockholm, Sweden. The company has a total of over a thousand employees working across its various offices.
NetEnt and Betable
Betable have signed a long term licencing agreement with NetEnt, enabling casino operators using the Betable platform access to the vast portfolio of the company’s games. Indeed, you will find a wide selection of NetEnt titles on all Betable casino sites.