Net Entertainment
Interim report January – September 2013
Net Entertainment 22.10.2013 07:30 --------------------------------------------------------------------------- Quote from CEO, Per Eriksson - The third quarter showed strong development as we launched a total of nine new customers and signed agreements with five new customers, including gaming operators Ladbrokes and William Hill, two of the largest operators in the world. In addition we signed a framework agreement with platform supplier GTECH. Third quarter 2013 -- Revenues for the third quarter increased by 25.0 % to SEK 153.1 (122.5) million -- Operating profit amounted to SEK 44.5 (36.1) million -- Operating margin was 29.1 (29.5) % -- Profit after tax amounted to SEK 39.4 (30.8) million -- Earnings per share amounted to SEK 0.99 (0.78) before and after dilution -- Five license agreements with new customers were signed, nine new customers' casinos were launched First nine months 2013 -- Revenues for the first nine months increased by 18.0 % to SEK 450.6 (382.0) million -- Operating profit amounted to SEK 124.2 (115.8) million -- Operating margin was 27.6 (30.3) % -- Profit after tax amounted to SEK 111.1 (102.2) million -- Earnings per share amounted to SEK 2.81 (2.58) before dilution and SEK 2.80 (2.58) after dilution -- 17 new license agreements were signed and 14 new customers' casinos were launched Important events in the third quarter -- Agreements were signed with Ladbrokes and William Hill, two of the world's largest gaming operators -- Global framework agreement signed with GTECH, a leading platform supplier -- Three agreements were signed with existing customers for delivery of Live Casino. One customer launched Live Casino in the third quarter -- Three agreements were signed with existing customers for delivery of mobile games. Six customer launched mobile games in the third quarter Comments from Per Eriksson, President and CEO The third quarter showed strong development as we launched a total of nine new customers and signed agreements with five new customers, including gaming operators Ladbrokes and William Hill, two of the largest operators in the world. In addition, we signed a framework agreement with platform supplier GTECH. Revenues showed positive development compared to last year which primarily was a result of good underlying growth with our existing customer base in combination with the addition of 22 new customers that have been signed in the last twelve months. Net Entertainment has year after year showed proof of the Company's ability to generate good results for our partners, which has led to an increased demand for our products. This, in combination with a high commitment throughout the entire organization, has led to several new agreements with some of the largest operators in Great Britain. I am existed about what the market in Great Britain can generate for Net Entertainment in the future when all operators are fully launched. Discussions are also ongoing with all the large operators that have yet to sign up with Net Entertainment. Today, Net Entertainment is one of the world's largest suppliers of online casino with approximately 80 customers that offer the Company's games via hundreds of online casinos to players all over the world and the outlook for continued growth is good. The agreement that was signed with GTECH is a framework agreement which allows Net Entertainment to offer the Company's casino portfolio to GTECH's platform. GTECH is one of the world's largest supplier of gaming content to so called WLA operators (World Lottery Association), which are often government owned gaming monopolies where Net Entertainment historically have had a very low market share. The agreement with GTECH means an opportunity to increase the penetration in this market. Live Casino is a new exciting product that Net Entertainment launched in the beginning of 2013. During the summer a new scalable version of Live Casino blackjack was launched where the tables allow an unlimited number of simultaneous players and during the fourth quarter traditional blackjack will be launched. Currently the product is in an early stage with a total of 22 customers signed for the product of which nine have been launched. When the product reaches full capacity it is expected to generate good revenues for the Company. Mobile games continue to grow strong but the product is still in an early stage. We see a continued demand from customers to develop more mobile games. We will therefore increase the investments in mobile games to further strengthen Net Entertainment's leading position. In the third quarter Net Entertainment announced that the Swedish Tax Agency maintains its decision to impose additional taxes of SEK 92.1 million. We are now in the process of appealing the decision. Net Entertainment has a bright future. During the last quarter we have launched several exciting products, signed agreement with large new operators and I see great potential in new markets that will be regulated going forward. For additional information please contact; Per Eriksson, CEO and President Net Entertainment; Tel +46 8 57 85 45 00 per.eriksson@netent.com About Net Entertainment Net Entertainment is a premium supplier of digitally distributed gaming systems used by some of the world's most successful online gaming operators. The Net Entertainment casino is a complete gaming solution comprising both a complete management platform and a full suite of high quality games. Operators are provided a customized casino that is easily integrated ensuring short time to market and a cost efficient operation. Net Entertainment is listed on Nasdaq OMX Stockholm (NET-B). More information about Net Entertainment is available at www.netent.com. News Source: NASDAQ OMX 22.10.2013 Dissemination of a Corporate News, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- Language: English Company: Net Entertainment Sweden Phone: Fax: E-mail: Internet: ISIN: SE0001989252 WKN: End of Announcement DGAP News-Service ---------------------------------------------------------------------------
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