Q2 slowdown for NetEnt
NetEnt’s CEO Therese Hillman is disappointed that the company accounted for a slightly negative growth measured in euros in the second quarter.
This is what she says in a report to the News Agency Directly. At 11.50 the share price was down 17 percent.
What will you do to reverse this?
“We have a high activity in the company and we have a plan we are working on and implementing. And at the end of June we launched the game Jumanji, which stands very strong in such a short time.”
She continues:
“It’s about continuing to work with improved gaming portfolio and increased activity. It’s about shortening lead times and getting more in efficiency.”
Therese Hillman suggests that it can be difficult to surpass or reach up to last year’s ebit margin of close to 36 percent. But at ebitda level there is a chance to outperform last year’s listing of just over 45 percent.
“Looking at ebitda, there are absolute opportunities,” she comments.
The number of game races is still expected to be 21 this year, of which 10 have already been launched.
Is it more important to grow your income than to dampen costs?
“We want to be a growth company, but at the same time we have to dampen the growth of costs to show that we are in control. It’s equally hard focus on both.” It’s really important to us. ”
“Yes, I think we have”.
The company’s previous wording in the April report that there were conditions for an improved growth rate for the rest of 2018 is not included in the interim report.
“We still see opportunities but we do not want to guide in the second half,” commenting on the game manager position.
“Nobody in the company is satisfied with what we have achieved in the second quarter.”
However, the company has the ambition to show a better growth rate in the second half of the year compared with the first.
“It’s our ambition,” she says.
The fact that the company’s live casino bet begins to lift is important for Net Ent.
“We need to speed up our live casino. It’s top priority for us.”
The stock rages and is at 11.50 down by 17 percent.
Pareto Securities points out in a quick comment that no positive growth rate did not appear in the second quarter and expects the consensus image to be reduced somewhat. Another analytical house, who chooses to be anonymous, also notes that consensus goes down after the half-year report and predicted a negative price response.
