NetEnt warns Q4 earnings to miss market view
NetEnt on Tuesday warned its fourth-quarter results would lag market forecasts, citing weaker than expected revenue growth and negative effects from phasing out game deliveries to operators in some markets.
NetEnt says in Q4 2017, total revenues amounted to around 419 million SEK ($52.32 million) and operating profit is expected to be about 150 million SEK.
Analysts were on average expecting NetEnt Q4 EBIT (Earnings before interest and taxes) of 178 million SEK and revenues of 447 million SEK. NetEnt shares are down 18 pct over the past year, compared with a 10 pct rise in Stockholm’s OMXS All Share Index.
The company says difference between market estimates and preliminary operating profit is due to lower-than-expected revenue growth.
Company says phasing out deliveries of games to operators in Australia, Poland and Czech Republic in 2017 had a negative effect on revenue growth of around three percentage points.
NetEnt also says underlying revenue growth in some of its markets was lower than expected in the quarter, business continued to generate a solid cash flow in Q4 and dividend for 2017 will be at least in line with 2016 year’s level Source text for Eikon: Further company coverage: ($1 = 8.0080 Swedish crowns.