January 16, 2018 / 7:12 AM / a year ago

UPDATE 1-Sweden's NetEnt warns Q4 earnings to miss market view

(Adds detail, background, estimates)

Jan 16 (Reuters) - Swedish casino software producer 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, according to Thomson Reuters I/B/E/S

* NetEnt shares are down 18 pct over the past year, compared with a 10 pct rise in Stockholm’s OMXS All Share Index

* 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​

* Says 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) (Reporting by Johannes Hellstrom, Editing by Helena Soderpalm)

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