Net Entertainment Releases Strong Third Quarter Results

Online gambling software developer Net Entertainment has released its third quarter financial results, which show a strong performance by the Sweden based company.

Net Entertainment Chief Executive Björn Krantz said in the financial statement: "Net Entertainment’s strategic efforts are progressing well and are necessary to strengthen delivery capacity as the company grows, market matures, new customers are added and customers become larger."

"In addition, the regulation of the online market creates extensive requirements that must be faced but at the same time creates large business opportunities. The development of mobile games has continued during 2011 and the first games are expected to launch during the fourth quarter."

"Local regulation of our industry is ongoing, and we continuously monitor and evaluate each market individually to assess the impact on the company both from a financial, organizational and strategic perspective," Krantz reported.

"As for latest regulatory initiatives in Denmark we are currently working with necessary system, and game compliance planning, with an objective to establish on the local market which is scheduled for opening in the beginning of 2012."

"The development of Mobile games has entered its final testing stage and the games are expected to be launched before year-end. Mobile games are a natural complement to our existing product portfolio, which will create a new channel for additional revenue streams. Two of our most successful slot games, Gonzo’s Quest and Jack Hammer, will both be part of the initial launch."

"In the end of September, our slot game Mega Fortune paid an 11.7 million euro jackpot to a lucky 20-year old Norwegian, making it the largest ever jackpot in the history of online gaming. We launched a new platinum slot, Robin Hood, during the quarter which holds superior graphics, animations and mathematical design. We continue to push the limits in gaming entertainment and we have a strong commitment to provide our licensees with the most exciting content in order to maximize player experience."

"Our strategy to establish a solid footprint in UK remains firm, and as separately announced, we have signed an agreement in October to provide casino games content to Sky Betting and Gaming, which will further strengthen our presence in the UK."

The key financial indicators for Net Entertainment during the third quarter included:

• Revenue up 27.1% over the same period last year to SEK 111.4 million
• Operating profit of SEK 34.0 million, compared to 34.1 million during the same period last year.
• Operating margin at 30.5% down from 37.2% during the same period last year.
• Post tax profits of SEK 31 million compared to 30 million during the same period last year.
• Three new licensing agreements signed, with five new customer casinos launched.