H1/2010 REVENUES UP AT NETENT
3 September 2010
Swedish online gambling software provider
reports revenues up at $23.9 million
Swedish online gambling software provider Net
Entertainment AB has released its financial results for
the first six months of 2010, showing a 27.6 percent
year-on-year increase in revenues to $23.9 million.
The company revealed that its operating profit
increased by 25 percent year-on-year to $9.2 million off
a margin of 38.7 percent compared to 39.5 percent for
the first six months of 2009.
Profit after tax in
the reporting period amounted to $8.3 million, an
increase of $933,200 over the same period last year.
The company signed six new license agreements with
firms including Gioco Digitale/Bwin, Interwetten,
Intralot and Stan James and launched seven new casinos
for its customers.
"Traditionally, the second
quarter offers lower growth potential due to seasonal
effects, which this year was strengthened by the 2010
FIFA World Cup decreasing player activity for the casino
segment during the matches," said Johan Ohman, President
and Chief Executive Officer for Net Entertainment.
"Despite this, revenues increased by 27.2 percent,
42.3 percent in local currency, compared to the same
period last year.
"The online gaming industry is
changing to a regulated and more mature market, which
leads to near-term challenges and significant
opportunities in the longer term. This means increased
costs for Net Entertainment driven by adjustments for
the regulatory demands and more complex integrations.
"Meanwhile, we have a stable order backlog
consisting of Stan James and Expekt, who will start to
generate revenues primarily in the fourth quarter. The
additional delays announced by the Italian gaming
authority mean that the agreements we have signed are
estimated to start generating revenues at year-end.
Our close working dialogue with AAMS and the
customer base we have established in Italy creates a
very strong position for Net Entertainment when the
market is allowed to open. The regulatory development in
France has resulted in challenges for some of our
customers which impacted our business during the
quarter.
"We continue to reap the results of our
sales success and during this quarter we signed three
agreements with leading gaming operators. In addition,
an important bridgehead to the South American market was
established by signing a new license agreement with one
of the largest gaming operators in South America, Betboo,
in July. South America is one of many interesting
geographical regions on which we will increase our focus
going forward. For all of the three tier-one operators
with whom we signed agreements during the quarter, we
will replace the existing casino supplier, which is very
pleasing."
Online Casino News Courtesy of
Infopowa
More news here.
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