NetEnt | Better Gaming

Interim report January – June 2015

 -Revenues increased by 32.3% to SEK 271.2 (205.0) million
 -Operating profit amounted to SEK 92.7 (56.7) million, an increase of 63.3%
 -Operating margin was 34.2 (27.7)%
 -Profit after tax amounted to SEK 86.5 (52.5) million, an increase of 64.9%
 -Earnings per share amounted to SEK 2.17 (1.33) before dilution and SEK 2.16
(1.32) after dilution
 -Nine license agreements with new customers were signed, eight new customers’
casinos were launched

 -Revenues for the first six months increased by 34.6% to SEK 529.5 (393.4)
 -Operating profit amounted to SEK 174.5 (107.9) million, an increase of 61.7%
 -Operating margin was 33.0 (27.4)%
 -Profit after tax amounted to SEK 160.7 (98.6) million, an increase of 63.0%
 -Earnings per share amounted to SEK 4.03 (2.49) before dilution and SEK 4.02
(2.48) after dilution
 -20 license agreements were signed with new customers and 15 new customers’
casinos were launched

 -Launched with, Gamesys, PokerStars and Danske Spil
 -Entered cross-license patent agreement with IGT for North America
 -Granted local gaming licenses in Spain and launched with several customers
 -First two customer agreements were signed in New Jersey, with bwin/Borgata
and Caesars Interactive Entertainment
 -Launched first game in William Hill’s betting shops across the UK

“The strong growth continued in the second quarter and we took several
important steps towards entering new markets such as the US and Spain. We also
launched operations with William Hill retail, meaning that for the first time
our popular games are available in betting shops across the UK.

In the second quarter our revenues increased by 32.3% in SEK and 28.2% in EUR,
compared to the corresponding quarter last year. The operating margin was
34.2%, which is a significant improvement from last year. The margin increase
was driven by growing revenues and economies of scale, offsetting continuing
investments in new staff, product development and new markets. Profit after tax
rose by 64.9% to SEK 86.5 million and our operations continued to generate
strong cash flow. At the end of the second quarter we had a net cash position
of SEK 219.3 million, after ordinary cash distribution to shareholders of SEK
199.5 million in the form of an automatic redemption program. During the
quarter we handled 6.5 billion transactions in our systems, representing 26
percent growth compared to last year. The trend of increasing mobile gaming
continues; we see strong growth in our mobile games and they accounted for 23
percent of total game win in the quarter, up from a share of 13 percent in the
same quarter 2014.

Our growth strategy is to expand on regulated markets and we had a very
eventful second quarter with regards to new customers and new markets. We were
granted local gaming licenses in Spain in June and thanks to good preparations,
shortly thereafter we were able to go live with several large customers in the
country. Further, we launched our games with Danske Spil, the Danish
state-owned operator that is part of World Lottery Association (WLA), which is
a strategically important customer segment for us. We also signed our first two
customer agreements in New Jersey, with bwin/Borgata and Caesars Interactive
Entertainment, and entered a cross-patent licensing agreement with IGT for the
North American market. These contracts are very important as they form the
basis for our licensing process and entrance into the North American market. We
continue to take market shares in the UK, which has become our third largest
market in revenue terms and a key factor behind our strong growth overall. Live
Casino is an important product where we continue to see growth and market share
gains. In May we launched the product on the Italian market.

We constantly develop our offering to be at the forefront in terms of
technology, innovation and quality. In June we won three prestigious industry
awards at the annual eGaming Review B2B Awards in London, in the prize
categories for Innovation in mobile, Slot Provider and Mobile supplier –
further proof that our investments generate results.

The conditions for future growth continue to be good in Europe, especially in
Britain and Spain. Longer term, we see great potential in North America and
Asia. We also expect solid growth from mobile for many years to come. Retail is
a new distribution channel for us that could become important in the future.
Around 95 percent of all casino gaming still takes place offline and it is
strategically important for us to capitalize on the trend of increasing
convergence between offline and online. I look forward to the second half of
this year – the growth potential is great and we have a strong position within
digital entertainment on the fast-growing online casino market.”

For additional information please contact:
Per Eriksson, President and CEO, NetEnt AB (publ)
Phone: +46 8 57 85 45 00

About NetEnt
NetEnt AB (publ), previously Net Entertainment NE AB, is a leading digital
entertainment company, providing premium gaming solutions to the world’s most
successful online casino operators. Since its inception in 1996, NetEnt has
been a true pioneer in driving the market with thrilling games powered by a
cutting-edge platform. NetEnt is committed to helping customers stay ahead of
the competition, is listed on Nasdaq Stockholm (NET–B) and employs more than
600 people in Stockholm, Malta, Kiev, Gothenburg and Gibraltar.