Interim report January – June 2013
Quote from CEO, Per Eriksson
– Again, Net Entertainment showed double digit growth in the second quarter
despite the low season that normally starts in May. We have a solid sales
pipeline in Great Britain as well as in other parts of Europe and overall our
position is strong on the market and I look forward to the second half of 2013.
Second quarter 2013
— Revenues for the second quarter increased by 12.6 % to SEK 148.7 (132.0)
million
— Operating profit amounted to SEK 38.7 (39.6) million
— Operating margin was 26.0 (30.0) %
— Profit after tax amounted to SEK 38.8 (36.7) million
— Earnings per share amounted to SEK 0.98 (0.93) before and after dilution
— Six license agreements with new customers were signed, two new customers’
casinos were launched
First six months 2013
— Revenues for the first six months increased by 14.6 % to SEK 297.5 (259.5)
million
— Operating profit amounted to SEK 79.7 (79.7) million
— Operating margin was 26.8 (30.7) %
— Profit after tax amounted to SEK 71.7 (71.4) million
— Earnings per share amounted to SEK 1.81 (1.80) before and after dilution
— Twelve new license agreements were signed and five new customers’ casinos
were launched
Important events in the second quarter
— Agreement signed with Lottomatica, one of the largest operators in Italy
— Three agreements were signed with existing customers for delivery of Live
Casino. Four customers launched Live Casino in the second quarter
— Four agreements were signed with existing customers for delivery of mobile
games. Twelve customers launched mobile games in the second quarter
— Net Entertainment won three prestigious prices at the EGR Awards
Comments from Per Eriksson, President and CEO
The second quarter showed a solid development for Net Entertainment. We
launched several new games and despite the seasonal effect that normally occurs
during the months May-August the game volumes remained at a relatively stable
level compared to the previous quarter. Compared to last year the game
transactions increased by 34 percent. Revenue growth was 13 percent (17 percent
in euros) during the second quarter compared to the same period last previous
year and the operating margin amounted to 26 percent.
Net Entertainment is known for innovation, technology leadership and quality.
In June the Company received three prestigious awards at the EGR Awards for
Innovation in Slot Provision, Innovation in Mobile and Mobile Supplier of the
Year which was very pleasing.
We see a continued interest for Net Entertainment’s products and services. Six
new customer agreements were signed in the second quarter, of which one Tier-1
customer, Lottomatica, which is one of the market leaders in Italy. The
agreement will further strengthen our position in Italy.
Mobile games continue to show good growth and during the quarter four new
agreements were signed. To date 34 customers have launched mobile games. The
launch of the Live Casino product is moving forward, albeit at a somewhat
slower pace than expected, primarily due to certain operators that are waiting
to fully market the product until blackjack is live. We signed three new
agreements for Live Casino during the quarter with a total of 19 agreements
signed to date, of which eight are launched.
The Company is in the final phase of developing a unique game within Live
Casino, Common Draw Blackjack(TM). In traditional blackjack each table can have
a maximum of seven people playing simultaneously which has made the operators
experience a shortage in blackjack tables within live casino. In addition,
traditional blackjack is not scalable. Common Draw Blackjack(TM) is a unique
solution developed by Net Entertainment where the number of players is
unlimited while still receiving the same good experience as for traditional
blackjack. The launch of Common Draw Blackjack is expected to take place during
the third quarter followed by standard blackjack which also is an important
part in Net Entertainment’s Live Casino portfolio.
Net Entertainment has continued to invest in the Company’s platform and
internal systems to make development and distribution processes more efficient.
These projects are proceeding as planned.
Net Entertainment has a solid sales pipeline in Great Britain as well as in
other parts of Europe. We are following the developments in the US and are
currently investigating potential American partnerships. Overall our position
is strong on the market and I look forward to the second half of 2013
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 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.