Net Entertainment reports record figures in Q2

lier Net Entertainment has posted a 46.6% leap in operating profit for the second quarter of 2014, citing strong development with existing customers, new launches and positive currency fluctuations as reasons behind the firm’s record growth.

In the three months leading up to 30 June the company recorded revenue of SEK205m (€22.2m/$30.3m), up from SEK148.7m last year – a rise of 37.8%, which the firm attributes to increased volumes from existing customers and a greater amount of setup fees than usual from new agreements signed during the period.

Operating profit in the latest quarter increased from SEK38.7m in the previous year to SEK56.7m (€6.16m/$8.38m) this year.

Profit after tax was reported as SEK52.5m (€5.7m/$7.76m) – up from SEK39.6m in Q2 of last year.

The Q2 figures place NetEnt’s revenue for the first six months of the year at SEK393.4m (€42.71m/$58.14m), marking an increase of 32.2% from last year’s SEK297.5m.

Operating profit for the first six months increased by 35.5%, rising to SEK107.9m (€11.7m/$15.95m), while profit after tax increased from SEK73.4m in 2013 to SEK98.6m in 2014.

Per Eriksson, president and CEO of NetEnt, said: “The increase was primarily attributable to strong development with NetEnt’s customers but also due to more setup fees than usual in combination with a positive currency development.

“In addition the 2014 World Cup did not affect revenues negatively which is often the case during larger sports events as it can take attention from casino.

“I look forward to the rest of the year with a solid underlying growth with our customers and several large growth projects that have been initiated, such as the entry into North America and the retail contract with William Hill.”

He added that NetEnt is currently evaluating the regulations in Spain and investigating opportunities in Asia.

The firm has also just signed a global agreement with BwinParty, whereby NetEnt will supply a wide selection of its online mobile and desktop titles to the global online operator.