Interim report January - June 2013 Quote from CE
Post# of 301275

Quote from CEO, Per Eriksson
- Again, N et Entertainment showed double digit growth in the second quarter despite the low season that normally starts in May. We have a solid sales pipeline in Great Britain as well as in other parts of Europe and overall our position is strong on the market and I look forward to the second half of 2013.
Second quarter 2013
- Revenues for the second quarter increased by 12.6 % to SEK 148.7 (132.0) million
- Operating profit amounted to SEK 38.7 (39.6) million
- Operating margin was 26.0 (30.0) %
- Profit after tax amounted to SEK 38.8 (36.7) million
- Earnings per share amounted to SEK 0.98 (0.93) before and after dilution
- Six license agreements with new customers were signed, two new customers’ casinos were launched
First six months 2013
- Revenues for the first six months increased by 14.6 % to SEK 297.5 (259.5) million
- Operating profit amounted to SEK 79.7 (79.7) million
- Operating margin was 26.8 (30.7) %
- Profit after tax amounted to SEK 71.7 (71.4) million
- Earnings per share amounted to SEK 1.81 (1.80) before and after dilution
- Twelve new license agreements were signed and five new customers’ casinos were launched
Important events in the second quarter
- Agreement signed with Lottomatica, one of the largest operators in Italy
- Three agreements were signed with existing customers for delivery of Live Casino. Four customers launched Live Casino in the second quarter
- Four agreements were signed with existing customers for delivery of mobile games. Twelve customers launched mobile games in the second quarter
- Net Entertainment won three prestigious prices at the EGR Awards
Comments from Per Eriksson, President and CEO
The second quarter showed a solid development for Net Entertainment. We launched several new games and despite the seasonal effect that normally occurs during the months May-August the game volumes remained at a relatively stable level compared to the previous quarter. Compared to last year the game transactions increased by 34 percent. Revenue growth was 13 percent (17 percent in euros) during the second quarter compared to the same period last previous year and the operating margin amounted to 26 percent.
Net Entertainment is known for innovation, technology leadership and quality. In June the Company received three prestigious awards at the EGR Awards for Innovation in Slot Provision, Innovation in Mobile and Mobile Supplier of the Year which was very pleasing.
We see a continued interest for Net Entertainment’s products and services. Six new customer agreements were signed in the second quarter, of which one Tier-1 customer, Lottomatica, which is one of the market leaders in Italy. The agreement will further strengthen our position in Italy.
Mobile games continue to show good growth and during the quarter four new agreements were signed. To date 34 customers have launched mobile games. The launch of the Live Casino product is moving forward, albeit at a somewhat slower pace than expected, primarily due to certain operators that are waiting to fully market the product until blackjack is live. We signed three new agreements for Live Casino during the quarter with a total of 19 agreements signed to date, of which eight are launched.
The Company is in the final phase of developing a unique game within Live Casino, Common Draw Blackjack TM . In traditional blackjack each table can have a maximum of seven people playing simultaneously which has made the operators experience a shortage in blackjack tables within live casino. In addition, traditional blackjack is not scalable. Common Draw Blackjack TM is a unique solution developed by Net Entertainment where the number of players is unlimited while still receiving the same good experience as for traditional blackjack. The launch of Common Draw Blackjack is expected to take place during the third quarter followed by standard blackjack which also is an important part in Net Entertainment’s Live Casino portfolio.
Net Entertainment has continued to invest in the Company’s platform and internal systems to make development and distribution processes more efficient. These projects are proceeding as planned.
Net Entertainment has a solid sales pipeline in Great Britain as well as in other parts of Europe. We are following the developments in the US and are currently investigating potential American partnerships. Overall our position is strong on the market and I look forward to the second half of 2013
For additional information please contact;
Per Eriksson, CEO Net Entertainment; Phone +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 .

