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Net Entertainment Sees Continued Growth In Quarterly Report

Swedish internet betting firm has released its first quarter 2013 financial results, noting continued company growth despite the fact that post-tax profits were down nearly SEK 2 million.

Key financial indicators for the period ending March 31st were:

  • Revenues for the first quarter increased by 16.7% to SEK 148.8 (127.5) million

  • Operating profit was up at SEK 41.0 (40.1) million

  • Operating margin eased to 27.5 (31.4) percent

  • Profit after tax came in at SEK 32.9 (34.6) million

  • The company reported signing six new licence agreements in the quarter, and three new online casinos were launched for clients.

  • Agreements were signed with Bonza Gaming and 888, and the Bonza Gaming site was launched

  • Five agreements with existing customers were inked, calling for the delivery of NetEnt's Live Casino product. In total, four customers launched by the end of the quarter

  • Continued strong growth in Italy was experienced, making it Net Entertainment’s second largest market in the first quarter

  • Five agreements were signed with existing customers for delivery of the company's Mobile Touch offering

Commenting on his company's performance Net Entertainment CEO Per Eriksson said: "In January we also saw a somewhat positive impact from the jackpot game Mega Fortune which reached new record levels with a jackpot amounting to SEK 17.8 MEUR."

"The number of game transactions also reached a new record of 3.9 billion transactions in the first quarter which is an increase of approximately 30% compared to last year."

Speaking about his firm's 888 and Bonza Gaming deals Eriksson said, "Under the terms of the agreement with Bonza Gaming, Net Entertainment will deliver a wide range of slot games and other casino gaming for real-money gaming on Facebook. Online operator 888 is one of the most well reputed operators in the world and the agreement means that Net Entertainment will deliver some of the Company’s online and mobile games to 888 on a global basis. The platform integration with 888 is ongoing."

"We continue to follow our strategy, preparing for future growth and investments in customers, products and systems. Several initiatives, including Live Casino and the entry in Great Britain are still in very early stages and hinder our profitability short-term."

Speaking about proliferation in the U.S., Eriksson said: "We are looking at what opportunities can open up in the US, but do not underestimate the challenges that such an effort would mean. We continuously monitor the potential on new markets that are about to regulate, and carefully evaluate when and how Net Entertainment can take action."

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