Net Entertainment Financial Statement Release

Posted by Gambling News | Gambling Industry News | Thursday 9 February 2012 11:20 am

Earnings report 2011 – Quarterly report October – December 2011

2011 WAS A YEAR OF NEW INITIATIVES FOR CONTINUED SUSTAINABLE GROWTH

    FOURTH QUARTER 2011

  • Revenues for the fourth quarter increased by 21.6 % to SEK 121.1 (99.6) million
  • Operating profit amounted to SEK 42.2 (33.8) million
  • Operating margin was 34.9 (33.9) %
  • Profit after tax amounted to SEK 36.6 (29.0) million
  • Earnings per share amounted to SEK 0.93 (0.73) before and after dilution
  • Two new license agreements were signed, and two new customers’ casinos were launched

    FULL YEAR 2011

  • Revenues for the full year increased by 16.1 % to SEK 427.6 (368.3) million
  • Operating profit amounted to SEK 129.7 (136.4) million
  • Operating margin was 30.3 (37.0) %, 31.9 % excluding costs amounting to SEK 6.7 million related to former senior executives
  • Profit after tax amounted to SEK 115.6 (120.5) million
  • Earnings per share amounted to SEK 2.92 (3.05) before and after dilution
  • Seven new license agreements were signed, including G.Matica and Sky Betting & Gaming. Eleven new customers’ casinos were launched
  • Proposed transfer to shareholders is SEK 2.00 (2.00) per share

IMPORTANT EVENTS IN THE FOURTH QUARTER

Revenue growth for the fourth quarter was 21.6 percent compared to the fourth quarter 2010. The strengthened Swedish currency has held back revenue growth in SEK. In local currency, revenues increased by 23.1 compared to the fourth quarter 2010.

The number of game transactions amounted to 2.6 billion in the fourth quarter, an increase of 19.6 percent compared to the previous quarter and 48.9 percent compared to the same period in 2010.

During the fourth quarter agreements were signed for delivery of the casino portfolio to several large operators on the newly regulated online market in Denmark. On January 1 2012 Denmark opened up as a regulated market. Operators signed include Betsson, Unibet, Bet24, Sportingbet (including Scandicbookmaker and Danbook). Companies who intend to operate on the local market must fulfill the gaming authority’s compliance requirements during the fourth quarter 2012.

During 2011, Net Entertainment has adjusted and developed the Company’s system and games to be compliant with mobile units. In December the first mobile games were launched on the market. The initial launch includes mobile games supporting IOS terminals, i.e. Iphone, Ipad and Ipod, with three of the Company’s most successful casino games, Gonzo’s Quest, Jack Hammer and Blackjack. Net Entertainment’s mobile offering will be launched under the name NetEnt Touch™ and will include some of the best games from both the existing portfolio and new game releases. The launch of new mobile games will follow a phased roll-out approach to several partners during 2012.

Net Entertainments strategy is to be the leader within online casino. It is a continuous process to improve and expand the product portfolio and the Company constantly analyzes new opportunities. As a result from this, the Company has decided to launch its own Live Casino product with a planned release to the market around year-end 2012. This product segment is a complement to the Company’s existing games portfolio and is estimated to contribute positively to the Company’s growth in the future.

During the fourth quarter Per Eriksson was appointed CEO of Net Entertainment with a start date on March 1, 2012. Per is presently serving as CEO and President of Dustin Group AB. Prior to that, Per has had a long career within Dell, where he left as Head of Dell EMC (Europe, Middle East and Africa).

Intralot Interactive was launched in Italy where Net Entertainment is now live with five out of eight operators.

COMMENTS FROM BJÖRN KRANTZ, ACTING PRESIDENT AND CEO

Year 2011 was a year of new markets and product initiatives to secure continued solid growth for Net Entertainment moving forward. Revenues increased by 21.6 percent during the fourth quarter which is a result of organic growth. Net Entertainment has been successful in strengthening the position as a leading supplier of games and systems within online casino and our focus on customer closeness and product and technology leadership will continue to differentiate us. During 2011 our market share in Europe increased to 22.4 percent compared to 19.3 percent in year 2010 1.

Net Entertainment has a clear focus on online casino and to complement the existing product portfolio and strengthen the Company’s offering it was decided during the fourth quarter to launch our own Live Casino product with a planned release around year-end 2012. Live Casino is a relatively new form of gaming which has proven to be successful and is also expected to show good growth in the coming years.

We are committed to and take part in the ongoing regulation of our industry in Europe. Whether Net Entertainment enters a regulated market or not, is evaluated from case to case with regards to the financial, organizational and the strategic impact on the Company as a whole. Net Entertainment was among the first to enter Italy which regulated the market in July 2011 and Denmark which was regulated in January 2012.

We have now commercially launched five out of eight operators in Italy. The roll-out of remaining customers will take place as soon as practically possible. In addition, it is our ambition to launch slots as soon as the Italian authority allows it.

As a response to the growing mobile market the first mobile games were completed and launch took place according to plan during December 2011. Ongoing launches of new mobile games will take place during 2012 and we will monitor the development closely. The launch of new customers will take place continuously during 2012.

Several successful games have been lunched during 2011. Frankenstein was developed as part of our collaboration with Universal Studios and during the fourth quarter the development of Scarface was initiated which is one of the most well known brands ever in the movie industry. Two new platinum games were launched during the year, Robin Hood and Jack and the Beanstalk with graphics and a gaming experience which truly proves why Net Entertainment is the leading premium supplier of online games on the market today.

We will continue to invest in our business and organization to secure the opportunities identified by the Company, and to ensure short and long term competitiveness. We are taking another step towards becoming a full scale provider within online casino and it is very exciting to be able to offer our partners a broader product portfolio which strengthens both business and customer value in our strategic delivery responsibility as a supplier. I am convinced that Net Entertainment is well positioned for 2012 and I look forward to another exciting year.

(1), The market share is based on the gross gaming yield with Net Entertainment’s customers in relation to the European online casino market, estimated by H2 Gaming Capital in December 2011.

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Jackpot City Mobile Casino’s iPad Software

Posted by Gambling News | Casino News | Tuesday 9 November 2010 4:01 pm

JackpotCity Mobile Casino revolutionises casino games play with its cutting edge iPad software!

The mobile computing revolution just took a massive leap forward thanks to the launch of JackpotCity Mobile Casino‘s iPad centric Casino Software! This specially developed FREE casino software maximises the iPad’s innovative touch screen technology and delivers the ultimate mobile casino experience. This allows iPad owners to "play as they go" in a virtual JackpotCity Mobile Casino that is accessible almost anywhere in the world, at anytime.

Top iPad Casino Games Available
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JackpotCity Mobile Casino launched in 2009 and has quickly become one of the darlings of the mobile marketing and gaming world. They have consistently provided the best mobile gaming experience and have found themselves on the cutting-edge of this fast evolving industry.

Spokesperson Terry Maverick elaborates;
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The iPad as a Mobile Media Device
The iPad was launched in April of 2010 and sold 3 million devices in the first 80 days. It is a product that is at the forefront of the new "Tablet Style" Personal Computer and Media revolution and has been designed for browsing the web, playing games, streaming music, reading books and reading periodicals. Like the iPhone and iPod touch it’s controlled by a multitouch display that flips when you rotate the device for the ultimate mobile casino experience.

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