Interim report January-June 2011
New products, New markets, Continued growth
Second quarter 2011
– Revenues for the second quarter increased by 12.0 % to SEK 99.9 (89.2) million
– Operating profit amounted to SEK 27.2 (32.8) million
– Operating margin was 27.2 (36.8) %
– Profit after tax amounted to SEK 25.1 (30.4) million
– Earnings per share amounted to SEK 0.64 (0.77) before and after dilution
– One new license agreement was signed, and two new customers’ casinos were
launched
First six months 2011
– Revenues for the first six months increased by 10.2 % to SEK 195.1 (177.1)
million
– Operating profit amounted to SEK 53.5 (68.6) million
– Operating margin was 27.4 (38.7) %
– Profit after tax amounted to SEK 48.0 (61.4) million
– Earnings per share amounted to SEK 1.21 (1.55) before and after dilution
– Two new license agreements were signed, and four new customers’ casinos were
launched
Comments from Johan Öhman, President and CEO
The development in the second quarter was primarily a result of growth from the
existing customer base. Excluding revenues from France (that in June 2010
introduced a regulatory framework that excludes casino games) revenues
increased 25 percent. The number of game transactions continued to increase and
amounted to 1.9 billion, an increase of 30 percent compared to the same period
2010.
At the end of June “Frankenstein” was released, a video slot which is based on
the classic movie with the same name. Despite launching the game during a
period of the year which in general has lower gaming activity, the initial
development has been very positive. Frankenstein is priced separately due to to
the license fee payable to Universal who holds the rights to the brand. During
the quarter the partnership with Universal was extended with an additional well
known brand which will constitute the base for a game scheduled to be released
during the first half of 2012.
The development of casino games for mobile devices is progressing according to
plan and launch of the first games will take place during 2011. Gaming through
mobile devices holds increasing potential and expected to become an
increasingly important distribution channel going forward.
During the quarter two customers were launched and at the beginning of July
Expekt launched our games. In addition, Jaxx/Mybet is planning for launch
during quarter three.
The opening of the Italian online casino market will according to AAMS (the
Italian gaming authority) take place during July. The company’s Italian
customer base represents a significant market share and the majority of the
operators are ready for launch as soon as they obtain a formal approval.
Initially table games and video poker will be offered and slot machines are
expected to be allowed during the first half of 2012.
Overall Net Entertainment is well positioned and I expect we will see the
results from the investments we have made in the business in the coming
quarters.
For additional information please contact;
Johan Öhman, CEO Net Entertainment; Phone +46 8 57 85 45 00
johan.ohman@netent.com
About Net Entertainment
Net Entertainment is a premium supplier of digitally distributed gaming
systems used by some of the world’s most successful online gaming operators.
The Net Entertainment casino is a complete gaming solution comprising both a
complete management platform and a full suite of high quality games. Operators
are provided a customized casino that is easily integrated ensuring short time
to market and a cost efficient operation. Net Entertainment is listed on Nasdaq
OMX Stockholm (NET-B). More information about Net Entertainment is available at
www.netent.com.