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Net Entertainment's Q1-2014 report

Wednesday April 23 ,2014 :   GOOD INTERIM FROM NET ENTERTAINMENT
 
Online gambling software provider enjoys another positive and very active quarter.
 
Net Entertainment's Q1-2014 report released Wednesday showcases another successful quarter with the performance indicators all going in the right direction for the period January-March 2014.
 
* Revenues for the first quarter increased by 26.7  percent to SEK 188.4 (148.8) million
 
* Operating profit came in at SEK 51.2 (41.0) million
 
* Operating margin was 27.2 (27.5) percent
 
* Profit after tax was SEK 46.1 (33.8) million
 
* Earnings per share amounted to SEK 1.17 (0.86) before dilution and SEK 1.16 (0.85) after dilution
 
Operational highlights included:
 
* Four licence agreements with new customers were signed and two new customers’ casinos were launched
 
* A partnership agreement was signed with GameAccount Network, a platform supplier with focus on the Italian market
 
* Six agreements were signed with customers for delivery of mobile games and 10 customers launched mobile games in the quarter
 
* Ten agreements were signed for delivery of Live Casino and four customers launched Live Casino in the quarter
 
Per Eriksson, president and CEO of the company, said:
 
"Net Entertainment had a very good start in 2014 with a growth of 26.7 percent while strengthening its position in Europe by signing several new customer agreements and launching several new games.
 
"Operating profit amounted to 27.2 percent during the first quarter which was in line with previous year and in line with our expectations. The number of game transactions continued to grow and amounted to 5 billion which is an increase of about 26 percent compared to last year.
 
"Mobile games continue to grow and represented more than 11 percent of Net Entertainment's gross gaming revenues (bet-win) in the first quarter.
 
"We signed a partnership agreement with platform supplier GameAccount Network during March which was very pleasing as Net Entertainment can now reach additional operators, such as Snai, Sisal and Eurobet on the Italian market.
 
"During April we launched on bet365 which is one of the world’s largest gaming operators. The agreement with bet365 is on a global basis and Net Entertainment’s games will be placed under its own "Vegas" tab on bet365’s web site.
 
"Regulated markets is a strategic focus area for Net Entertainment and we are investigating the possibility for establishment in Holland and Spain which are currently regulating online gaming and we are preparing the company for the re-regulation in Great Britain which is expected to take place during the second half of 2014.
 
"Net Entertainment has also developed a close collaboration with the Italian gaming authority AAMS where both parties are now actively working on getting unlicensed operators, that have a focus on Italian players, to acquire a local license.
 
"Net Entertainment does not intend to deliver the company’s products to unlicensed operators in Italy after the end of this year. Short-term, Net Entertainment’s revenues may be negatively affected by this, but it will depend on how many operators that acquire an Italian license.
 
"We are working on preparations for an establishment in North America.
 
"I am convinced that we will see a continued eventful year in the form of new markets, new customer agreements and new products for the company."



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