Internet wagering software developer Net Entertainment has released its third quarter 2012 financial results, showcasing increased revenues for the period.
Key financial indicators for the period ending September 30th were:
Revenues for the third quarter increased by 9.9% to SEK 122.5 (111.4) million
Operating profit amounted to SEK 36.1 (34.0) million
Operating margin was 29.5 (30.5) percent
Profit after tax amounted to SEK 30.8 (31.0) million
Game transactions were 2.8 billion in the third quarter - a decrease of approximately 3% compared to previous quarter.
One new license agreement was signed and five new customers’ casinos were launched
Year to date numbers for Net Entertainment are:
Revenues for the first nine months increased by 24.6% to SEK 382.0 (306.5) million
Operating profit amounted to SEK 115.8 (87.5) million
Operating margin was 30.3 (28.5) percent
Profit after tax amounted to SEK 102.2 (79.0) million
Eleven new license agreements were signed and eleven new customers’ casinos were launched
Commenting on the results, Net Entertainment President and CEO Per Eriksson said: "The third quarter has been an eventful quarter characterised by larger strategic development projects such as Live Casino, the Great Britain entry and preparations for slot games in Italy, all which are estimated to be completed during the fourth quarter. These projects are expected to gradually start generating noticeable revenues during the first and second quarter 2013."
"Revenues were affected by currency effects during the third quarter as the Swedish Krona strengthened by approximately eight percent compared to the corresponding quarter 2011. This resulted in a revenue increase of about 10% in SEK but 20% in Euros compared to the corresponding period 2011."
"We see a big interest for the company’s Live Casino product and agreements for beta testing have been signed with two customers. In addition, several discussions are ongoing with large operators for the Live Casino. Initially, Net Entertainment will offer Roulette and recruitment of studio personnel started during the third quarter which will continue as Live Casino grows and new game types are added."
"Discussions with operators based in Great Britain are progressing and there is a great interest for Net Entertainment’s games portfolio. Depending on what customers the company signs in this market, additional development work may be required."
"We continue to see good growth numbers in Italy and Net Entertainment’s mobile solution is growing rapidly. With the new products and games now becoming completed and launched with our customers in combination with several interesting business opportunities, mainly in Great Britain, the outlook looks very promising."
"To conclude, Net Entertainment is still in an expanding and a development-intense phase where the full revenue potential from these initiatives will not begin until next year. The market potential from Live Casino, Great Britain and mobile games that have only begun to be explored by Net Entertainment in combination with regulation of various markets in Europe allows for a positive future outlook."