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Net Entertainment Releases Full Year Financial Results

Internet betting software developer Net Entertainment has released their fourth quarter and full year 2014 financial results, noting surging revenues and profits.

Key financial indicators for the fourth quarter 2014 were:

  • Revenues increased by 33.8 percent to SEK 241.1 (180.1) million;

  • Operating profit up 44.5 percent y-o-y at SEK 80.3 (55.6) million;

  • Operating margin improved at 33.3 percent (30.9 percent);

  • Profit after tax amounted to SEK 77.1 (53.5) million;

  • EPS of SEK 1.93 (1.42) before dilution and SEK 1.93 (1.41) after dilution.

Full year financial results were:

  • Revenues increased by 35 percent to SEK 851.7 (630.7) million;

  • Operating profit up 45.6 percent at SEK 261.7 (179.7) million;

  • Operating margin was 30.7 percent (28.5 percent);

  • Profit after tax amounted to SEK 243.2 (167.1) million

  • EPS of SEK 6.10 (4.23) before dilution and SEK 6.09 (4.21) after dilution;

  • 31 new licence agreements were signed and 28 new customers’ casinos were launched;

  • Proposed transfer to shareholders is SEK 5.00 (3.00) per share.

Corporate highlights for the year were:

  • Ten new licence agreements were signed and six new customers’ casinos were launched;

  • For the first time ever, NetEnt developed a new game entirely in HTML5 for both desktop and mobile, a slot game based on the classic Universal Pictures movie The Invisible Man. Previously, desktop games have been developed in Flash and this is a change that is expected to bring economies of scale going forward;

  • Within the partnership with platform supplier GameAccount Network, NetEnt games were launched with Eurobet on the regulated Italian market.

Commenting on his company's performance Net Entertainment CEO Per Eriksson said, "The number of game transactions also posted new records. In the fourth quarter, the NetEnt platform handled on average more than 2 billion transactions per month and for the full year 2014 the number of transactions increased by 32 percent to 21.4 billion."