Interim report January – September 2009
THIRD QUARTER 2009
– Revenues for the third quarter increased by 44.0 % to SEK 75.8 (52.7) million
– Operating profit increased by 35.2 % to SEK 30.0 (22.2) million
– Operating margin was 39.5 (42.1) %
– Profit after tax increased by 4.4 % to SEK 20.8 (19.9) million
– Earnings per share amounted to SEK 0.53 (0.50)
– Two new license agreements were signed for CasinoModule™
NINE-MONTH PERIOD 2009
– Revenues for the nine-month period increased by 49.5 % to SEK 214.6 (143.6)
million
– Operating profit increased by 47.9 % to SEK 84.8 (57.4) million
– Operating margin was 39.5 (39.9) %
– Profit after tax increased by 42.4 % to SEK 75.3 (52.8) million
– Earnings per share amounted to SEK 1.90 (1.34)
– Seven new license agreements were signed for CasinoModule™
– Two breakthrough agreements were signed for CasinoCafé™ in January
COMMENTS FROM JOHAN ÖHMAN, PRESIDENT AND CEO
Growth during the third quarter was primarily a result of a large increase in
player activity from existing customer base and the addition of four new
operators, including Paf and Sportingbet. Due to the strengthened Swedish
krona, we did not benefit from the increased player activity to a full extent,
as the majority of invoicing is carried out in Euros. Over one billion game
transactions were managed during the quarter which is twice as many as the same
period last year and 16 percent more than previous quarter. As the numbers of
transactions have increased significantly the average stake per game round has
declined somewhat which we estimate is a result of the continued unease on the
financial market. However, the increased player activity gives a strong
foundation the day the effect of the financial unease diminishes.
The European gaming market is transforming and many countries like Italy,
France and Denmark, have announced an intention to introduce a licensing
procedure. We believe that this will favour Net Entertainment who can increase
market share. A large focus is being dedicated to address new business
opportunities but also to capitalise on the functionality introduced in
CasinoModule™ which enables the operators to offer our games to a larger share
of the player base. By reaching more active players, revenues from the existing
customer base can increase on top of revenues from organic growth. The roll-out
of CasinoCafé™ with Delta Invest has been delayed primarily due to technical
reasons. During the fourth quarter we will appoint a local resource to
dedicatedly assist Delta Invest and attend to the market.
The activities carried out during the year to strengthen the organisation and
our offer has proceeded well and the IT-projects previously announced are
basically completed. As a result the company is well prepared to continue its
success and to take on new challenges.
ABOUT NET ENTERTAINMENT
Net Entertainment NE AB and its subsidiaries (which together form the Group or
the Company) is a premium supplier of digitally distributed online 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 recognised 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 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
johan.ohman@netent.com
Bertil Jungmar, CFO Net Entertainment; Phone +46 8 57 85 45 00
bertil.jungmar@netent.com