NETENT POSTS Q3-2012 NUMBERS
25th October, 2012 at 02:56:58
Encouraging interest in new live dealer project
The Swedish online gambling software and games developer Net Entertainment has released its Q3-2013 performance numbers to end September, noting the following highlights:
Third quarter 2012
* 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
The company also reported on its nine month performance to date in 2012:
* 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
Since the end of the previous quarter the Swedish Krona has strengthened significantly against the Euro which has affected Net Entertainment's revenues negatively in the third quarter 2012.
During Q3-2012 two new agreements were signed for beta test of NetEnt's new Live Casino, which is expected to be launched during the fourth quarter 2012.
Per Eriksson, President and CEO at NetEnt, said:
"The third quarter has been an eventful quarter characterised by larger strategic development projects such as Live Casino, the the UK 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% 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 the UK 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 the UK, 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, the UK 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."
Related News Tags: Netentertainment, Mobile Gambling, Live Dealer, Net Entertainment, Sweden