FOURTH QUARTER 2009
Revenues for the fourth quarter increased by 37.8 % to SEK 85.4 (62.0) million
Operating profit increased by 16.2 % to SEK 35.4 (30.5) million
Operating margin was 41.4 (49.1) %
Profit after tax increased by 19.5 % to SEK 32.4 (27.1) million
Earnings per share amounted to SEK 0.82 (0.69)
Three new license agreements were signed for CasinoModule™
FULL YEAR 2009
Revenues for the full year increased by 46.0 % to SEK 300.1 (205.6) million
Operating profit increased by 36.9 % to SEK 120.2 (87.8) million
Operating margin was 40.1 (42.7) %
Profit after tax increased by 34.7 % to SEK 107.7 (80.0) million
Earnings per share amounted to SEK 2.72 (2.02)
Ten new license agreements were signed for CasinoModule™ and 14 new
customer’s casinos were launched
Two agreements were signed for CasinoCafé™ in January 2009
Proposed dividend is SEK 2.00 (1.25) per share
COMMENTS FROM JOHAN ÖHMAN, PRESIDENT AND CEO
We saw strong growth at the end of 2009 with a revenue growth of 12 percent
during the fourth quarter compared to quarter three. The increase was the
result of organic growth by existing licensees. The number of game transactions
increased by 23 percent during the same period. Combined, this result shows
that there is a strong market development and demand for our products. This
positive trend has continued in January.
We have a solid order backlog comprising e.g. Expekt and Microgame which,
together with Sportingbet rolling out CasinoModule™ on additional geographical
markets, will create new license revenues. The implementation of Seamless
Wallet is ongoing with our major licensees. This functionality enables
operators to place Net Entertainment’s games in other parts of the web portal
than the casino and thereby offer games to a larger share of their players.
This creates a foundation for increased gaming revenues from new player
segments. CasinoCafé™ had positive development during the fourth quarter with
increasing volumes; however, from a low level. Delta Invest continues the
roll-out of CasinoCafé™, which has been slower than expected, with focus
primarily on the Ukraine market.
The market for online gambling is in transition. Several countries have
announced that they will introduce a licensing scheme. Italy is first, followed
by Denmark and France. A regulated online gambling market creates new
opportunities for both the industry and Net Entertainment as private companies
will be able to become licensed. In return, they will be taxed on the profits.
A regulated online gaming market will attract new players and thereby create
new business opportunities. I view regulation as positive for our business with
opportunities to gain new customers and revenues. Prompted by the high pace of
market change there are high expectations on suppliers to prepare for new
market circumstances. Naturally this may lead to costs being incurred before
revenues are realized.
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 core
product, CasinoModule™, is a complete gaming platform comprising high quality
games and a powerful administration tool. Operators are provided a customized
solution that is easily integrated ensuring short time to market and a cost
efficient operation. Revenues consist of royalties based on revenues generated
by the company’s products and setup fees when new agreements are signed. Net
Entertainment is a pure development company and thus does not conduct any
gaming operations of its own. The company’s brand is internationally recognized
and associated with innovation, service, and quality.
All technical development is carried out at the Group’s Stockholm office and
all commercial operations such as sales, marketing and product management are
carried out from the Malta office. The company also has an office in Gibraltar.
The parent company is listed on NASDAQ OMX Stockholm since January 13, 2009.
Prior to this, the Company’s share was listed on the Nordic Growth Market (NGM)
Equity since April 2007.
For more information please contact;
Johan Öhman, CEO Net Entertainment; Phone +46 8 57 85 45 00
Bertil Jungmar, CFO Net Entertainment; Phone +46 8 57 85 45 00