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STRONG QUARTER 3 FOR NET ENTERTAINMENT

Thursday, October 27, 2011 : Indicators all favourable for Swedish online gambling software provider
 
Swedish internet gambling software developer Net Entertainment has released its Q3 and nine month year-to-date report, showcasing strong performance driven by organic growth.
 
Highlights of the third quarter 2011 include:
 
- Revenues up by 21.7 percent to SEK 111.4 (Q3 2010: 91.6) million
 
- Operating profit of SEK 34.0 (Q3 2010: 34.1) million
 
- Operating margin lower at 30.5 (Q3 2010: 37.2)  percent, 36.5 percent excluding costs amounting to SEK 6.7 million related to former senior executives.
 
- Profit after tax of SEK 31.0 (Q3 2010: 30.0) million
 
- Three new license agreements were signed, and five new customers’ casinos were launched
 
KPIs for the nine months to date include:
 
- Revenues up by 14.1 percent to SEK 306.5 (2010: 268.7) million
 
- Operating profit down at SEK 87.5 (2010: 102.7) million
 
- Operating margin lower at 28.5 (2010: 38.2)  percent, 30.7  percent excluding costs amounting to SEK 6.7 million related to former senior executives
 
- Profit after tax lower at SEK 79.0 (2010: 91.4) million
 
- Five new license agreements were signed, and nine new customers’ casinos were launched
 
Management reports that revenue growth for the third quarter was 24.1 percent in local currency compared to the third quarter 2010. The strengthened Swedish currency has held back revenue growth in SEK which was 21.7 percent.
 
The number of game transactions rose to 2.2 billion in the third quarter, an increase of 13.5 percent compared to the previous quarter and 53.5 percent compared to the same period in 2010.
 
In July 2011, new legislation took effect regarding online gaming in Italy, and Net Entertainment has signed agreements with several large operators for the Italian market. Gioco Digitale was first to launch, followed by Unibet and Betclic. Microgame was launched at the end of the quarter.
 
"Net Entertainment’s strategic efforts are progressing well and are necessary to strengthen delivery capacity as the company grows, market matures, new customers are added and customers become larger," chief executive Björn Krantz reports.
 
"In addition, the regulation of the online market creates extensive requirements that must be faced but at the same time creates large business opportunities. The development of mobile games has continued during 2011 and the first games are expected to launch during the fourth quarter."
 
During the quarter, Johan Öhman left his position as CEO of the company. Until a new CEO is found, former sales director Björn Krantz has been appointed Acting President and CEO.
 
"Local regulation of our industry is ongoing, and we continuously monitor and evaluate each market individually to assess the impact on the company both from a financial, organizational and strategic perspective," Krantz reported.
 
"As for latest regulatory initiatives in Denmark we are currently working with necessary system, and game compliance planning, with an objective to establish on the local market which is scheduled for opening in the beginning of 2012.
 
"The development of Mobile games has entered its final testing stage and the games are expected to be launched before year-end. Mobile games are a natural complement to our existing product portfolio, which will create a new channel for additional revenue streams. Two of our most successful slot games, Gonzo’s Quest and Jack Hammer, will both be part of the initial launch.
 
"In the end of September, our slot game Mega Fortune paid an 11.7 million euro jackpot to a lucky 20-year old Norwegian, making it the largest ever jackpot in the history of online gaming. We launched a new platinum slot, Robin Hood, during the quarter which holds superior graphics, animations and mathematical design. We continue to push the limits in gaming entertainment and we have a strong commitment to provide our licensees with the most exciting content in order to maximize player experience.
 
"Our strategy to establish a solid footprint in UK remains firm, and as separately announced, we have signed an agreement in October to provide casino games content to Sky Betting and Gaming, which will further strengthen our presence in the UK."



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NBA odds on Thunder vs. Pacers Game? - This Wednesday night in Indianapolis, Paul George is due to play his first game at the Fieldhouse as a member of the Oklahoma City Thunder (12-13 SU, 8-17 ATS). But George might not face the Indiana Pacers (15-11 SU, 16-10 ATS); he’s listed as day-to-day with a right calf contusion. Tip-off is at 7 PM ET on ESPN.

2 New Christmas Slots For Microgaming - Microgaming’s jolly game additions this December. Microgaming adds two more games to kick off the festive season, in addition to its action-packed Highlander online slot.

SportsBetting Supreme Court Showdown - Sports Law, Betting and Integrity leaders convene to preview Supreme Court Showdown. Thought leaders weigh in on Christie vs. NCAA (which in January will shift to Murphy vs. NCAA)

Mega Moolah Progressive Slot Pays Again - On 15 November 2017, the Mega Moolah jackpot was won by a Grand Mondial Casino player. They took home €938,306.35.

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NBA Odds: Heat Can Burn Cavaliers in Cleveland - The Cleveland Cavaliers (12-7 SU, 6-12-1 ATS) may have turned their season around, but they’ve got a challenging matchup this Tuesday against the Miami Heat (9-9 SU, 7-9-2 ATS), tipping off at 7 PM ET on NBA-TV. Miami is 7-4 SU and 6-5 ATS against the Cavs since LeBron James went back to Cleveland in 2014.

Games Concept Day in Malta - The Quickfire Games Concept Day is the second full-day workshop to date, the first being held in Gibraltar in July.

AFC’s fight against match-fixing - The Asian Football Confederation (AFC) has introduced a new AFC integrity mobile application, which will enable fans, players and officials to report possible suspicious activities or provide information concerning match-fixing or corruption to the AFC Integrity Unit.

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