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Record Q3-2014 For Net Entertainment

Thursday October 23,2014 : NET ENTERTAINMENT REPORTS A RECORD THIRD QUARTER
 
Strong underlying growth in existing business, and more new licensees.
 
The Swedish online gambling software provider Net Entertainment has posted its Q3-2014 results, showcasing continued strong growth from existing customers, and several new licensees.
 
CEO Per Eriksson said Thursday that the quarter represented another record in Net Entertainment's reliable good performance, with seven new licensee agreements and solid underlying growth from existing clientele.
 
"Game transactions increased by 37 percent compared to last year which further shows that NetEnt’s games and products are market leading. New customers and currency effects also contributed positively to the revenue growth," Eriksson reported.
 
"Our investments within mobile games are performing well and growing strongly. Mobile games represented 16.5 percent of the quarter’s revenues."
 
Highlights of the company's quarterly performance include:
 
* Revenues for the third quarter increased by 41.8  percent to SEK 217.2 (SEK 153.1) million;
 
* Operating profit was SEK 73.4 (SEK44.5) million, an increase of 64.9 percent;
 
* Operating margin was 33.8 (29.1)  percent;
 
* Profit after tax reached SEK 67.5 (40.2) million;
 
* Seven license agreements with new customers were signed, seven new customers’ casinos were launched
 
Net Entertainment published its nine months Year To Date numbers, detailing:
 
* Revenues for the first nine months up by 35.5 percent to SEK 610.6 (SEK450.6) million
 
* Operating profit at SEK 181.3 (124.2) million, an increase of 46.1 percent;
 
* Operating margin was 29.7 (27.6) percent;
 
* Profit after tax of SEK 166.1 (113.6) million;
 
* 21 new license agreements were signed and 22 new customers’ casinos were launched
 
* Two Tier 1 agreements were signed - with gaming operator Bwin.party and with Betfair. Betfair has already launched;
 
* Björn Krantz, current m.d. of Net Entertainment Malta Ltd will lead NetEnt's expansion into North America and will be replaced by Enrico Bradamante, current head of Account Management and Deputy Head of Malta operations.
 
CEO Persson explained:
 
"NetEnt is driving several new large initiatives where the pace has accelerated in the third quarter. The preparations for an entry in North America have started with New Jersey as the first state in the US where NetEnt will apply for a license.
 
"We are also preparing the license application for Spain. I expect that the company to be live in Spain during the first half of 2015.
 
"We have also focused on upgrading NetEnt’s platform in 2014, work that is expected to continue during 2015. The purpose of the platform development is to secure our high hosting capacity as the company grows its customer base and to allow for a faster and more efficient distribution of new functionality and games to the operators.
 
"We have now launched a total of 34 customers for Live Casino. NetEnt has previously signed agreements with the largest operators in the UK, which is the largest market for online casino in Europe.
 
"We still have a low market share in the UK and we have high expectations on what this market can offer in terms of future growth for NetEnt."



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