A N N U A L R E P O R T 2 0 17_ 0 2 3
Historically, online gaming demand has not proven to be cyclical.
Global breakdown of online games Bingo Other games Poker Lotteries Casino Betting
The global casino market – NetEnt’s potential
4% 5% 6% 9% 26% 50%
Online casino gaming 5% Land-based casinos and gaming machines 95%
2017, and is expected to grow by an average of 14 percent annually through 2022. Premium solutions performing best NetEnt focuses on premium solutions for the online casino market, the segment that has shown strong growth and profitability in recent years. NetEnt has increased its turnover by an average of 24 percent annually since 2010, with the European online casino market growing by 13 percent annually over the same period. In the mobile gaming segment, NetEnt continues to prosper in terms of volume, technical content and accessibility. Revenues from the mobile gaming segment continued to climb during the year, accounting for 54 percent of game win for NetEnt’s games in the fourth quarter 2017, compared with 43 percent the year before. Four years ago, in Q4 of 2013, the corresponding figure was just nine percent.
Train robbery in progress! It’s Wild Wild West: The Great Train Heist™.
Fast adaptation to regulations Despite growing competition linked to market expansion, NetEnt has succeeded in gaining market share, due primarily to an offering which appeals to both operators and players and by swiftly adapting to an increasingly regulated market for online casino gaming. NetEnt’s current market share is around 28 percent in Europe, and 17 percent globally, based on market data from H2GC. Among suppliers, the online gaming market is dominated by a handful of companies. Many of these deliver a broader offering of products than NetEnt, which is focused on casino games. NetEnt’s main competitors are Playtech and Microgaming, and there are a number of smaller competitors too. In the Live Casino segment, Evolution Gaming is NetEnt’s biggest competitor.
Source: H2GC, February 2018
The online casino market MEUR
20,000
Europe Rest of the world
15,000 10,000 5,000 0
2017
2018
2019
2020
2021
2022
Growth forecast 2018–2022 Source: H2GC, February 2018
Historical mobile growth for NetEnt
NetEnt’s market shares
Percentage of game win from mobile
Europe
Global
30%
60%
20% 10% 0% 2014
2017
Source: NetEnt and H2GC, February 2018
0%
2010
2017
Source: NetEnt and H2GC, February 2018
Percentage of the global market and growth rates Latin America Other countries North America Asia and the Middle East Europe
Share 1% 6% 13% 17% 62%
* Forecast 2017–2022
EN22-27_marknad.indd 23
Source: H2GC, February 2018
Growth* 8% 7% 8% 7% 4%
Source: H2GC, February 2018
2018-03-28 13:59:00