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Net Entertainment inked 11 new mobile gambling agreements in Q1-2012

04/26/2012 : GOOD FIRST QUARTER FOR ONLINE GAMBLING SOFTWARE PROVIDER
 
Net Entertainment inked 11 new mobile gambling agreements in Q1-2012
 
The Swedish online gambling software provider Net Entertainment has posted its interim report for the period January to March 2012, noting the following highlights:
 
* Eleven new customer agreements signed for mobile games
 
* Revenues for the first quarter increased by 33.9 percent to SEK 127.5 (95.2) million, boosted by the recently regulated Italian market
 
* Operating profit amounted to SEK 40.1 (26.3) million
 
* Operating margin was 31.4 percent (27.6 percent)
 
* Profit after tax amounted to SEK 34.6 (22.9) million
 
* Five new license agreements were signed and two new customers’ casinos were launched
 
* Game transactions amounted to 3.0 billion in the first quarter - up 58 percent on the same period in 2011.
 
* NetEnt has launched several clients in the newly opened Danish market, including Betsson, Unibet, Bet24, Scandicbookmarkers and Danbook.
 
* 11 new agreements were signed for NetEnt's Touch mobile product, bringing to 14 the number so far, of which three are already live. The mobile offering now extends to Android users as well, and new games are being translated into the mobile environment.
 
Per Eriksson, President and CEO, commented:
 
"The development for Net Entertainment has been positive during the first quarter. The revenue growth is primarily a result of increased volumes with our existing customers but also due to new agreements signed and the launch of new customers.
 
“We are also starting to see results from the investments we have made in Italy which is now the company’s third largest market, where Norway and Sweden are the two largest markets. Despite the fact that slots are not yet allowed, the development has been positive in Italy and volumes have increased. We are ready to launch slot games as soon as the gaming authority allows it.
 
"The number of gaming transactions continued to increase compared to last year. The number of gaming transactions is an indication of the success of our games and the demand on the market.
 
"The development of a Live Casino product is progressing according to plan and we plan to launch the product around the end of 2012. We have launched mobile games with three customers and signed an additional eleven new agreements for mobile during the first quarter. We plan to launch several mobile games during 2012.
 
"Historically, Net Entertainment has had a small presence on the UK market, which is Europe’s largest market for online games. Positive discussions are ongoing with several operators. The sales and integration process is complex and certain adjustments are needed on Net Entertainment’s platform in order to be able to integrate with the operator’s IT architecture. This development work is expected to be completed during the second half of 2012."



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