Interim report January – March 2014
First quarter 2014
— Revenues for the first quarter increased by 26.7 % to SEK 188.4 (148.8)
million
— Operating profit amounted to SEK 51.2 (41.0) million
— Operating margin was 27.2 (27.5) %
— Profit after tax amounted to SEK 46.1 (33.8) million
— Earnings per share amounted to SEK 1.17 (0.86) before dilution and SEK 1.16
(0.85) after dilution
— Four license agreements with new customers were signed, two new customers’
casinos were launched
Important events in the first quarter
— A partnership agreement was signed with GameAccount Network, a platform
supplier with focus on the Italian market
— Six agreements were signed with customers for delivery of mobile games and
10 customers launched mobile games in quarter
— Ten agreements were signed for delivery of Live Casino and four customers
launched Live Casino in the quarter
Comments from Per Eriksson, President and CEO
Net Entertainment had a very good start in 2014 with a growth of 26.7 percent
while strengthening its position in Europe by signing several new customer
agreements and launching several new games. Operating profit amounted to 27.2
percent during the first quarter which was in line with previous year and in
line with our expectations. The number of game transactions continued to grow
and amounted to 5 billion which is an increase of about 26 percent compared to
last year. Mobile games continue to grow and represented more than 11 percent
of Net Entertainments gross gaming revenues (bet-win) in the first quarter.
We signed a partnership agreement with platform supplier GameAccount Network
during March which was very pleasing as Net Entertainment can now reach
additional operators, such as Snai, Sisal and Eurobet on the Italian market.
During April we launched bet365 which is one of the world’s largest gaming
operators. The agreement with bet365 is on a global basis and Net
Entertainment’s games will be placed under its own tab, “Vegas” on bet365’s web
site.
Regulated markets is a strategic focus area for Net Entertainment and we are
investigating the possibility for establishment in Holland and Spain which are
currently regulating online gaming and we are preparing the Company for the
re-regulation in Great Britain which is expected to take place during the
second half of 2014. Net Entertainment has also developed a close collaboration
with the Italian gaming authority AAMS where both parties are now actively
working on getting unlicensed operators, that have a focus on Italian players,
to acquire a local license. Net Entertainment does not intend to deliver the
Company’s products to unlicensed operators in Italy after the end of this year.
Short-term, Net Entertainment’s revenues may be negatively affected by this,
but it will depend on how many operators that acquire an Italian license. We
are working on preparations for an establishment in North America.
Net Entertainment has had a strong start in 2014 and I am convinced that we
will see a continued eventful year in the form of new markets, new customer
agreements and new products for the Company.
For additional information please contact;
Per Eriksson, CEO Net Entertainment; Phone +46 8 57 85 45 00
per.eriksson@netent.com
About Net Entertainment
Net Entertainment is a premium supplier of online casino games used by many of
the world’s most successful online casino operators. The Net Entertainment
CasinoModule™ is a leading- edge gaming system which includes high-quality
online casino games, powerful bonus programs and a sophisticated Back Office.
CasinoModule™ creates the ultimate gaming experience for the player, while
managing billions of transactions every year and gives online casino operators
full control and management of their casino activities. Operators are provided
with 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). For more information please visit www.netent.com.