Net Ent sees 14% profit growth in bumper Q3
Casino supplier Net Entertainment has seen a 14% year-on-year increase in operating profit, it announced in its third quarter results today.
Casino supplier Net Entertainment has unveiled a 14% year-on-year increase in third-quarter operating profit to SEK34.1m (£3.2m) on the back of underlying market growth, contributions from new licensees and increased average bet size.
Revenues increased 21% to SEK91.6m (£8.6m), from SEK75.8m (£7.1m) in a quarter that saw the Swedish company launch eight casinos for new customers, and sign eight new licence agreements with operators including Gioco Digitale and Bwin.it, Interwetten, Intralot and Stan James, and an as-yet-unnamed South American business.
Net Entertainment president and chief executive Johan Ãhman however added that revenue growth in SEK in the quarter had been held back by the strengthened Swedish currency.
But the effect of casino games not being included in the regulated market French market on the business had been negligible, said Ãhman. “The impact on Net Entertainment from the regulatory development in France, which had a negative effect on some of our licensees, was cushioned as a result of our pricing model,” he said.
Integration of games onto operators’ Italian platforms ahead of the market opening for casino, expected to occur by year’s end, had continued apace during the quarter, said Ãhman.
“Operators holding an existing licence in Italy will be first out, which will benefit Net Entertainment as several of the licensed operators are existing customers to us,” he said.
Net Entertainment had also recently received a licence to offer its casino solution to gaming operators licensed by the Alderney Gaming Commission, revealed Ãhman.
“Significant efforts have gone into setting up a hosting facility in Alderney which will be commissioned during the fourth quarter,” said Ãhman. He added that the licence would enable it to better address certain markets such as the UK as well as provide disaster recovery services to the company’s existing licensees.