NetEnt CEO Fired for Under-Performance
The Swedish software giant took the decision to remove CEO Per Eriksson after the board determined that the company’s performance ‘has not been as it should.’
Eriksson’s dismissal was announced via a company press release on Sunday evening stating that the current CEO and President would be stepping down effective immediately. Current Chief Financial Officer, Therese Hillman has been placed as acting CEO while the hunt for Eriksson’s successor begins.
The move will come as a surprise to many, none more than Eriksson himself who had recently appeared at the ICE Totally Gaming 2018 convention in Berlin in February to promote NetEnt’s unveiling of the brand new Live Beyond Live 3D Experience in collaboration with gambling operator Mr Green.
Commentators speculate that shaky Q4 financial results announced last month where the company failed to meet expectations is the reason behind the CEO’s removal. Heavy investments in new products coupled with unforeseen exits from the Australian, Polish and Czech markets due to regulatory change had a detrimental impact on the company’s revenues.
Speaking via a company press statement, Vigo Carlund, the chairman of the software development company’s board outlined the reasoning behind the dismissal.
The Board believes that NetEnt needs a new driving force to reverse the trend and increase the focus on growth. The value creation potential in NetEnt remains significant. The online gaming market has structural growth driven by the migration from offline to online gaming. The Company has a solid balance sheet and a strong brand name in its segment of the market.– Vigo Carlund, Chairman, NetEnt
Eriksson had served as NetEnt’s CEO and President since March 2012 when he joined the company. Investors displayed their dismay on Monday as shares in the software giant fell by 8.57%. The board has chosen to act fast as the search for a new CEO is already underway with a replacement expected to be announced in the coming weeks.