Net Entertainment H1: turnover, profit up 50%+
NetEntertainment has announced stellar half-year results, with both turnover and profit up by more than half.
NET ENTERTAINMENT has announced stellar half-year results, with both turnover and profit up by more than half.
Revenues for the first six months of 2009 increased 53% on the same period in 2008 to SEK138.8m (13.7m), from SEK90.9m.
Operating profit increased by 59% to SEK54.9, from 35.2m, while profit after tax increased by 65.4% to SEK54.5, from 32.9m.
Operating margin increased 0.8 of a percentage point to 39.5%, from 38.7%.
Like Swedish rival Entraction, whose half-year results yesterday also showed strong growth, the second quarter for NetEnt saw a slow down, with KPI all showing healthy but lower growth.
Turnover was up 45.5% on the same period in 2008, to SEK70.1m from SEK48.2; operating profit up 38% to SEK25.3 from SEK18.3m; and profit after tax up 30% to SEK22.6m from £17.5m.
In a statement, the company attributed the slowdown to “a somewhat negative currency development combined with seasonal effects and few new casinos being commissioned,” together with non-recurring IT projects, which affected profit by SEK6m. The IT projects will be completed in the third quarter, the company said.
Cashflow was affected in the second quarter by the winning of a SEK 47.3m jackpot by a player of one of NetEnt’s licensees, one of NetEnt’s largest jackpots ever. However the cash, which paid out as a lump sum, did not affect profits as there was a provision for the full amounts.
During the second quarter Björn Krantz was also employed as chief of operations and managing director for sales and marketing company NetEntertainment Malta, and will begin in the role on 1 September.
NetEnt also struck a licensing deal with Nordic operator Paf which will see it provide download and browser-based versions of its CasinoModule product suite to Paf for a four year period.
For the second half, the company said that the launch of CasinoCafé and the commissioning of CasinoModue with Paf and Sportingbet would increase revenue, as would the addition of Expekt.com.