Earlier this month, the turnover and profit figures of NetEnt were announced by the company over the fourth quarter of 2018. These quarterly figures were again very disappointing and this has ensured that the proportion of NetEnt at the Stockholm trade fair has been reduced considerably. It seems that the Swedish developer from online casino games A way down has been taken. This while other players on the market are active who can show figures that are positive. Are the glory years beyond the once unassailable market leader? Or is just entertainment to save with the changes that the new CEO Therese Hillman has in mind?
+ 50% decrease in course since 2016
The negative trend with the operating results of NetEnt has been busy for some time. The company was at the height of his powers in 2016. At that time there were several online casinos active who only offered games of the Swedish developer. Net entertainment therefore offers a game offer where all types of online casino games can be found. Video slots, classic slot machines, table games, video poker and live casino. Now there are still many suppliers, such as the Eskimo Casino recommended by us, where the vast majority of the games are in the range of the hand of NetEnt. However, other players have come to the market that may have chosen better strategies to torn to the power of the then market leader. This has ensured that today the proportion of NetEnt on the stock exchange is more than 50% lower than the high point in 2016.
Therese Hillman New CEO
Due to the disappointing operating results, in September of 2018, it has already been decided to send the avenue of the company's CEO of the company, per Eriksson. His replacement is Therese Hillman. The woman who still worked as a CFO of NetEnt. In the short period that Hillman employs as a new CEO, she has not yet been able to turn the tide. This is apparent from the re-disappointing figures presented for the fourth quarter of 2018. However, Hillman has good hope that change is upcoming. She reports that a higher rising line has also been deployed in the fourth quarter, but that it has been undoubtedly done by a falling course of the Swedish crown.
Plans to throw the helm
There are plans to throw the helm and these were announced at the shareholders during the presentation of the quarterly figures. For example, a reorganization will take place, so that 55 people will lose their job at the company. There are also plans to bring out more new video slots. Where 21 new slots were released last year, this will have to be between 30 and 35 next year. With this, the company naturally hopes to stay in the spotlight of the gamblers at online casinos.
Will this have the right effect?
Whether these proposed changes will also have the desired effect for NetEnt is the question. Of course we cannot look into the figures of the company to see where most of the turnover comes from. However, we know with certainty that it is primarily a number of classic games that are played by the gros of the gamblers. Here are still a few NetEnt video slots on but these are almost all years old. Consider, for example, classics such as Starburst and Gonzo's Quest who still immensely are popular among gamblers. We think that a better strategy would be to release games that are exceptional quality instead of as many titles as possible.