by Renee Israel
Net Entertainment AB, the Stockholm-based online casino software developer,
has released its third quarter interim financial results. The results show an
impressive 21.7 percent increase year-on-year resulting in Net Entertainment
Q3 revenues of SEK111.4 million ($17.57 million).
The company revealed that its operating profit reduced by slightly more than
$15,770 in the third quarter of 2011, compared to the third quarter of 2010.
This resulted in a total operating profit of SEK34 million ($5.35 million).
Profits after tax increase by slightly more than three percent to SEK31 million
Net Entertainment's operating margin for the third quarter was 30.5 percent,
compared to 37.2 percent for the third quarter in 2010. During that period, the
software developer signed three new licensing agreements and launched five
websites for clients. The company saw a number of changes during the third
quarter including the resignation of CEO Johan Ohman. Bjorn Krantz, Sales
Director and CEO of the Net Entertainment Malta Limited subsidiary is filling in
as Acting President and CEO.
Net Entertainment revenue increased by 21.7 percent compared to last year,
which is a result of strong casino performance with existing licensees combined
with the launch of five new customers in both new and existing markets," said
"In addition, Net Entertainment signed three new customer agreements during
the quarter, one of which was G.Matica, focusing on the Italian market."
"The development of mobile games has entered its final testing stage and the
games are expected to be launched before the year end. Mobile games are a
natural complement to our existing portfolio, which will create a new channel
for additional revenue streams. Two of our most successful slot games, Gonzo's
Quest and Jack Hammer, will both be part of the initial launch."
Krantz on the NetEnt Strategic Plan
Krantz expressed his excitement on taking on the position of Acting President
and CEO for Net Entertainment during such a strong third quarter. He referred to
the new agreements signed by Net Entertainment during that time as "very
exciting and encouraging."
"Our strategy to establish a solid footprint in UK remains firm and as
separately announced we have signed an agreement in October to provide casino
games content to Sky Betting and Gaming, which will further strengthen our
presence in the UK," Krantz said.
"We follow our strategic plan and continue to invest in operational and
portfolio excellence, which will safeguard our competitive edge and long-term
profitable growth moving forward. I look forward to Net Entertainment's future,
which holds great opportunities."
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