New products, New markets, Continued growth
| Second quarter 2011 |
- Revenues for the second quarter increased by 12.0 % to SEK 99.9 (89.2) million
- Operating profit amounted to SEK 27.2 (32.8) million
- Operating margin was 27.2 (36.8) %
- Profit after tax amounted to SEK 25.1 (30.4) million
- Earnings per share amounted to SEK 0.64 (0.77) before and after dilution
- One new license agreement was signed, and two new customers’ casinos were launched
| First six months 2011 |
- Revenues for the first six months increased by 10.2 % to SEK 195.1 (177.1) million
- Operating profit amounted to SEK 53.5 (68.6) million
- Operating margin was 27.4 (38.7) %
- Profit after tax amounted to SEK 48.0 (61.4) million
- Earnings per share amounted to SEK 1.21 (1.55) before and after dilution
- Two new license agreements were signed, and four new customers’ casinos were launched
| Comments from Johan Öhman, President and CEO |
The development in the second quarter was primarily a result of growth from the existing customer base. Excluding revenues from France (that in June 2010 introduced a regulatory framework that excludes casino games) revenues increased 25 percent. The number of game transactions continued to increase and amounted to 1.9 billion, an increase of 30 percent compared to the same period 2010.
At the end of June “Frankenstein” was released, a video slot which is based on the classic movie with the same name. Despite launching the game during a period of the year which in general has lower gaming activity, the initial development has been very positive. Frankenstein is priced separately due to to the license fee payable to Universal who holds the rights to the brand. During the quarter the partnership with Universal was extended with an additional well known brand which will constitute the base for a game scheduled to be released during the first half of 2012.
The development of casino games for mobile devices is progressing according to plan and launch of the first games will take place during 2011. Gaming through mobile devices holds increasing potential and expected to become an increasingly important distribution channel going forward.
During the quarter two customers were launched and at the beginning of July Expekt launched our games. In addition, Jaxx/Mybet is planning for launch during quarter three.
The opening of the Italian online casino market will according to AAMS (the Italian gaming authority) take place during July. The company’s Italian customer base represents a significant market share and the majority of the operators are ready for launch as soon as they obtain a formal approval. Initially table games and video poker will be offered and slot machines are expected to be allowed during the first half of 2012.
Overall Net Entertainment is well positioned and I expect we will see the results from the investments we have made in the business in the coming quarters.
For additional information please contact;
Johan Öhman, CEO Net Entertainment; Phone +46 8 57 85 45 00
johan.ohman@netent.com
About Net Entertainment
Net Entertainment is a premium supplier of digitally distributed gaming systems used by some of the world's most successful online gaming operators. The Net Entertainment casino is a complete gaming solution comprising both a complete management platform and a full suite of high quality games. Operators are provided a customized casino that is easily integrated ensuring short time to market and a cost efficient operation. Net Entertainment is listed on Nasdaq OMX Stockholm (NET-B). More information about Net Entertainment is available at www.netent.com.
