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REVENUES AND PROFITS UP AT NETENT

The Swedish listed online gambling software provider Net Entertainment has turned in another sterling set of quarterly and year-to-date results, with rising after tax profits and substantially improved revenues.
 
Highlights in the Year To Date numbers for the nine months to end September include:
 
• Revenue for the nine-month period increased by 50 percent to SEK 143.0 (95.1) million.
• Profit after tax rose by 65 million to SEK 52.8 (32.1) million
• Operating margin was 40.0 (37.0) percent
• 16 new license agreements.
 
And for the third quarter 2008:
 
• Revenues increased by 63 percent to SEK 52.6 (32.3) million.
• Profit after tax rose by 104 percent to SEK 19.9 (9.8) million.
• Operating margin was 42.2 (32.9) percent
• 8 new license agreements
 
Chief Executive Officer Johan Öhman said: “Net Entertainment is continuing to evolve strongly. The primary driving force is volume growth with our existing customers and the infusion of new. The games and [software] functionalities that the company has launched have strongly contributed to the success. Development during the second and third  Pokerstarsquarter is characterised by a lower seasonal effect compared to previous years. We see no tendencies for a slowdown in the market growth for online gaming and the fourth quarter has started off strongly.
 
"The [NetEnt] development work in the Ukraine is proceeding well and the company now has two development teams in place. The downloadable casino is at present undergoing acceptance testing and will be launched for our customers shortly. During the third quarter a virtual horseracing game in the category “soft games” was launched. The result will determine whether additional soft games will be developed.
 
"Sales aimed at new customers have been successful. Agreements in the first nine months of the year have been signed with four Tier 1 operators. As a result of this the company’s dependence on individual customers is drastically diminished."
 
A statement from the company revealed that growth in the third quarter has been strong thanks to successful marketing initiatives, with three new games released during the period and three new licensee operations launched, thereby boosting the company's revenue base. A further eight new agreements were inked during the quarter, including King, Chipleader, 21Media, Bingo Las Vegas, No IQ Poker and three operators that for now wish to remain anonymous. Four others were cancelled when the operators did not reach minimum turnover levels.
 
Revenue was favourably affected by the higher volumes reported for the third quarter as compared with the equivalent period 2007. However, higher volumes also meant a somewhat lower average price due to a policy through which higher volumes generate a lower price. The royalty levels per pricing system remained stable throughout the quarter. Third quarter sales increased 9 percent over the previous quarter.
 
Operating profit was up 108 percent compared with the period last year and 21 percent over the previous quarter as the company accelerated its development pace broadened its selection of products. Contract developments in the Ukraine and outsourced development resources in Stockholm helped to increase the rate of development. The company also incurred costs related to the ongoing listing process for the trading of shares on the OMX Nordic Exchange in Stockholm.
 
At the end of the quarter, Net Entertainment had 17 contracted customers that have not yet been launched.
 
The company says that the market for online gaming has exhibited strong growth over previous years and global sales for internet gaming are expected to exceed USD 16 billion in 2008. In the next few years, Europe is expected to represent more than half the total gaming revenues and grow by 15-20 percent annually, making it by far the largest online gaming market. Net Entertainment therefore views the conditions for continued expansion in the Internet casino market as good.
 
The company's intention to target a broader market and expand will depend on a more generous product portfolio, organic growth or could be achieved through acquisitions or in-licensing.
 
Net Entertainment has increased headcount and now employs 77 persons and 30 subcontractors.
 
The fourth quarter has started strongly, with the company achieving accreditation by the respected independent player protection and standards body eCOGRA, and signing another new licensee. The company currently has an operational customer base of some sixty international gaming companies. Net Entertainment releases a new games every twelve weeks, with each release comprising 4-6 new games that licensees.

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Gambling News :

Is Gibraltar Out of Luck in US Tax Challenge - Gibraltar's challenge to the UK 15 percent point-of-consumption tax on online gambling operator revenues has already failed in the UK High Court, and it looks as if it may be rejected by the European Court of Justice too.

Quickspin are now available in Denmark - #quickspin The roll-out strengthens the long-standing partnership between the supplier and the operator, with Quickspin games already available on Vera&John’s websites around the world.

UCypher Launches - Indian entertainment and media entrepreneur Ronnie Screwvala has announced the formation of UCypher, an eSports tournament in which ten teams will compete.

Extreme Live Gaming In deal With Betsson - Extreme Live Gaming, a subsidiary of the Novomatic Interactive group, has announced a live dealer product deal with the Betsson online gambling group, with an initial launch planned for Betsson.com, followed by other brands in the Swedish group's portfolio.

Expansion Mode For BoyleSports - The Bambury premises are situated in Kildare, Meath and Dublin and will be refurbished and rebranded after acquisition, with the total of 31 staff remaining in employment..

Safecharge Q4-2016 - Online e-cash processing firm Safecharge, where Playtech's Teddy Sagi is a majority shareholder, released a trading update on its Q4-2016 performance Thursday, flagging record transaction processing volumes and revenues.

ASA Most Controversial Ads of 2016 - Paddy Power's penchant for advertisements that cause a stir saw the betting company mentioned twice in the Top Ten most controversial adverts of 2016 released by the Advertising Standards Authority in the UK Thursday.

Yggdrasi To Enter Italian Gambling Market - Yggdrasil’s Italian offering will include the company's collection of in-game promotional tools, BOOST, improving gamification, and the social sharing tool, BRAG. The company’s mobile product will also be available on its HTML5 iSense 2 platform.

888sport is the latest to join sports betting integrity body ESSA - Major operator 888sport is the latest to join sports betting integrity body ESSA with the company adding its customer base and betting market platforms to ESSA’s global anti-fraud alert and reporting system.

First partypoker live event to be held in Russia - Partypoker’s new live tour will kick off in Russia on March 24, 2017 at Sochi Casino and Resort in association with Club Poker Management. Online Day 1’s will start on partypoker on March 12, 2017.

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