Interim report January – September 2013
Quote from CEO, Per Eriksson
– The third quarter showed strong development as we launched a total of nine
new customers and signed agreements with five new customers, including gaming
operators Ladbrokes and William Hill, two of the largest operators in the
world. In addition we signed a framework agreement with platform supplier
GTECH.
Third quarter 2013
— Revenues for the third quarter increased by 25.0 % to SEK 153.1 (122.5)
million
— Operating profit amounted to SEK 44.5 (36.1) million
— Operating margin was 29.1 (29.5) %
— Profit after tax amounted to SEK 39.4 (30.8) million
— Earnings per share amounted to SEK 0.99 (0.78) before and after dilution
— Five license agreements with new customers were signed, nine new customers’
casinos were launched
First nine months 2013
— Revenues for the first nine months increased by 18.0 % to SEK 450.6 (382.0)
million
— Operating profit amounted to SEK 124.2 (115.8) million
— Operating margin was 27.6 (30.3) %
— Profit after tax amounted to SEK 111.1 (102.2) million
— Earnings per share amounted to SEK 2.81 (2.58) before dilution and SEK 2.80
(2.58) after dilution
— 17 new license agreements were signed and 14 new customers’ casinos were
launched
Important events in the third quarter
— Agreements were signed with Ladbrokes and William Hill, two of the world’s
largest gaming operators
— Global framework agreement signed with GTECH, a leading platform supplier
— Three agreements were signed with existing customers for delivery of Live
Casino. One customer launched Live Casino in the third quarter
— Three agreements were signed with existing customers for delivery of mobile
games. Six customer launched mobile games in the third quarter
Comments from Per Eriksson, President and CEO
The third quarter showed strong development as we launched a total of nine new
customers and signed agreements with five new customers, including gaming
operators Ladbrokes and William Hill, two of the largest operators in the
world. In addition, we signed a framework agreement with platform supplier
GTECH. Revenues showed positive development compared to last year which
primarily was a result of good underlying growth with our existing customer
base in combination with the addition of 22 new customers that have been signed
in the last twelve months.
Net Entertainment has year after year showed proof of the Company’s ability to
generate good results for our partners, which has led to an increased demand
for our products. This, in combination with a high commitment throughout the
entire organization, has led to several new agreements with some of the largest
operators in Great Britain. I am existed about what the market in Great Britain
can generate for Net Entertainment in the future when all operators are fully
launched. Discussions are also ongoing with all the large operators that have
yet to sign up with Net Entertainment.
Today, Net Entertainment is one of the world’s largest suppliers of online
casino with approximately 80 customers that offer the Company’s games via
hundreds of online casinos to players all over the world and the outlook for
continued growth is good. The agreement that was signed with GTECH is a
framework agreement which allows Net Entertainment to offer the Company’s
casino portfolio to GTECH’s platform. GTECH is one of the world’s largest
supplier of gaming content to so called WLA operators (World Lottery
Association), which are often government owned gaming monopolies where Net
Entertainment historically have had a very low market share. The agreement with
GTECH means an opportunity to increase the penetration in this market.
Live Casino is a new exciting product that Net Entertainment launched in the
beginning of 2013. During the summer a new scalable version of Live Casino
blackjack was launched where the tables allow an unlimited number of
simultaneous players and during the fourth quarter traditional blackjack will
be launched. Currently the product is in an early stage with a total of 22
customers signed for the product of which nine have been launched. When the
product reaches full capacity it is expected to generate good revenues for the
Company.
Mobile games continue to grow strong but the product is still in an early
stage. We see a continued demand from customers to develop more mobile games.
We will therefore increase the investments in mobile games to further
strengthen Net Entertainment’s leading position.
In the third quarter Net Entertainment announced that the Swedish Tax Agency
maintains its decision to impose additional taxes of SEK 92.1 million. We are
now in the process of appealing the decision.
Net Entertainment has a bright future. During the last quarter we have launched
several exciting products, signed agreement with large new operators and I see
great potential in new markets that will be regulated going forward.
For additional information please contact;
Per Eriksson, CEO and President Net Entertainment; Tel +46 8 57 85 45 00
per.eriksson@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.