SECOND QUARTER 2009
Revenues for the second quarter increased by 45.5% to SEK 70.1 (48.2) million
Operating profit increased by 38.4% to SEK 25.3 (18.3) million
Operating margin was 36.1% (37.9)
Profit after tax increased by 28.9% to SEK 22.6 (17.5) million
Earnings per share amounted to SEK 0.57 (0.44)
Two new license agreements were signed for CasinoModule™
FIRST SIX MONTHS 2009
Revenues for the first six months increased by 52.6% to SEK 138.8 (90.9)
million
Operating profit increased by 55.8% to SEK 54.9 (35.2) million
Operating margin was 39.5% (38.7)
Profit after tax increased by 65.4% to SEK 54.5 (32.9) million
Earnings per share amounted to SEK 1.38 (0.83)
Five new license agreements were signed for CasinoModule™
Two breakthrough agreements were signed for CasinoCafé™ in January
COMMENTS FROM JOHAN ÖHMAN, PRESIDENT AND CEO
The business continued to develop positively during the second quarter
primarily driven by organic growth with our existing licensees. Overall, we
have a good momentum and the performance in the second quarter is in line with
our expectations. The evenue growth in the second quarter was lower than in the
first quarter 2009 due to a omewhat negative currency development combined with
seasonal effects and few new casinos being commissioned. The previously
announced IT projects, which are of a non-recurring nature, are progressing
well and affected profits during the second quarter by SEK 6 million. The
projects, which are necessary to ensure our future competitiveness, will be
completed during the third quarter. We continue to strengthen the organisation
through recruitments to meet the demands from new and increasingly larger
customers. At the same time additional development recourses are being
established abroad as a step in increasing our production capacity.
The launch of CasinoCafé™ and the commissioning of CasinoModue™ with Paf and
Sportingbet increase our revenue base and we see a continued positive
development for the business. The addition of Expekt.com further strengthens
the company's future revenue base and reinforces our position as a premium
supplier of gaming software to Tier 1 operators. To ensure a continued first
class account management and further increased sales focus, a new managing
director has been appointed for our sales and marketing company in Malta.
During the second quarter one of the largest jackpots ever was won by a player
of one of our licensees (SEK 47.3 million). The sum, that was paid out as a
lump sum, affected cash flow and cash balance but not profits as there is a
provision for the full amount (which is the case for all of our pooled
jackpots).
ABOUT NET ENTERTAINMENT
Net Entertainment NE AB and its subsidiaries (which together form the Group or
the Company) is a premium supplier of digitally distributed online gaming
systems used by some of the world's most successful online gaming operators.
The core product, CasinoModule™, is a complete gaming platform comprising high
quality games and a powerful administration tool. Operators are provided a
customized solution that is easily integrated ensuring short time to market and
a cost efficient operation Revenues consist of royalties based on revenues
generated by the company's products and setup fees when new agreements are
signed. Net Entertainment is a pure development company and thus does not
conduct any gaming operations of its own. The company's brand is
internationally recognised and associated with innovation, service, and
quality.
All technical development is carried out at the Group's Stockholm office, and
all commercial operations such as sales, marketing and product management are
carried out from the Malta office.
The parent company is listed on NASDAQ OMX Stockholm since January 13 2009.
Prior to this, the company's share was listed on the Nordic Growth Market (NGM)
Equity since April 2007.
For more information please contact;
Johan Öhman, CEO Net Entertainment; Phone +46 8 55 69 67 05
johan.ohman@netent.com
Bertil Jungmar, CFO Net Entertainment; Phone +46 8 50 59 67 96
bertil.jungmar@netnet.com
