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NetEnt AB (OSTO:NET IL B.PFD) Operating Income : kr637.27 Mil (TTM As of Sep. 2020)


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What is NetEnt AB Operating Income?

NetEnt AB's Operating Income for the three months ended in Sep. 2020 was kr193.51 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2020 was kr637.27 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. NetEnt AB's Operating Income for the three months ended in Sep. 2020 was kr193.51 Mil. NetEnt AB's Revenue for the three months ended in Sep. 2020 was kr510.44 Mil. Therefore, NetEnt AB's Operating Margin % for the quarter that ended in Sep. 2020 was 37.91%.

Warning Sign:

NetEnt AB operating margin has been in 5-year decline. The average rate of decline per year is -1.6%.

NetEnt AB's 5-Year average Growth Rate for Operating Margin % was -1.60% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. NetEnt AB's annualized ROC % for the quarter that ended in Sep. 2020 was 18.49%. NetEnt AB's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2020 was 349.03%.


NetEnt AB Operating Income Historical Data

The historical data trend for NetEnt AB's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

NetEnt AB Operating Income Chart

NetEnt AB Annual Data
Trend Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 398.59 533.01 576.11 597.32 502.54

NetEnt AB Quarterly Data
Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 105.99 153.19 111.15 179.43 193.51

NetEnt AB Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Sep. 2020 adds up the quarterly data reported by the company within the most recent 12 months, which was kr637.27 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


NetEnt AB  (OSTO:NET IL B.PFD) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

NetEnt AB's annualized ROC % for the quarter that ended in Sep. 2020 is calculated as:

ROC % (Q: Sep. 2020 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2020 ) + Invested Capital (Q: Sep. 2020 ))/ count )
=774.028 * ( 1 - 9.2% )/( (3848.694 + 3753.237)/ 2 )
=702.817424/3800.9655
=18.49 %

where

Invested Capital(Q: Jun. 2020 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=3868.387 - 80.36 - ( 254.342 - max(0, 826.712 - 766.045+254.342))
=3848.694

Invested Capital(Q: Sep. 2020 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=3848.088 - 69.868 - ( 337.309 - max(0, 785.413 - 810.396+337.309))
=3753.237

Note: The Operating Income data used here is four times the quarterly (Sep. 2020) data.

2. Joel Greenblatt's definition of Return on Capital:

NetEnt AB's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2020 is calculated as:

ROC (Joel Greenblatt) %(Q: Sep. 2020 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jun. 2020  Q: Sep. 2020
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=905.116/( ( (270.01 + max(-11.809, 0)) + (248.639 + max(-9.4130000000001, 0)) )/ 2 )
=905.116/( ( 270.01 + 248.639 )/ 2 )
=905.116/259.3245
=349.03 %

where Working Capital is:

Working Capital(Q: Jun. 2020 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(326.753 + 0 + 184.95) - (80.36 + 0 + 443.152)
=-11.809

Working Capital(Q: Sep. 2020 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(232.454 + 0 + 240.633) - (69.868 + 0 + 412.632)
=-9.4130000000001

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Sep. 2020) EBIT data.

3. Operating Income is also linked to Operating Margin %:

NetEnt AB's Operating Margin % for the quarter that ended in Sep. 2020 is calculated as:

Operating Margin %=Operating Income (Q: Sep. 2020 )/Revenue (Q: Sep. 2020 )
=193.507/510.44
=37.91 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


NetEnt AB Operating Income Related Terms

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NetEnt AB (OSTO:NET IL B.PFD) Business Description

Traded in Other Exchanges
N/A
Address
Vasagatan 16, Stockholm, SWE, SE-111 20
NetEnt AB is a Swedish company that is involved in the entertainment business and primarily develops and sells casino systems and game applications. The company's gaming portfolio comprises various game categories, including video slots, the firm's most popular category; branded games; live casino; table games; video poker; lottery and other; mini games; and pooled jackpot games. NetEnt and its customers, which are casino operators, work according to a partnership model where gaming operators pay a monthly license fee to NetEnt calculated as a percentage of the game win generated by NetEnt's games. Outside Sweden, the firm has expanded across Europe, namely in Spain and the United Kingdom, as well as New Jersey in the United States.

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