BUSINESS

Net Entertainment celebrates “very pleasing” Q2 as profit rises 46%

TAGs: bwin.party, Net Entertainment, netent

net-entertainment-profitsSwedish online gambling technology provider Net Entertainment reported another revenue record in Q2, with numbers improving 38% to SEK 205m (US $30.2m). Operating profit rose 46.6% to SEK 56.7m ($8.3m) while earnings per share rose one-third to SEK 1.33. NetEnt CEO Per Eriksson attributed the “very pleasing” showing to “a strong development from NetEnt’s customers but also due to more setup fees than usual.”

The second quarter of 2014 was a busy one for NetEnt, inking 22 total agreements, including 10 deals with new customers. Highlights included deals to supply online casino games to Full Tilt Poker and NetEnt game titles for gaming machines in William Hill’s betting shops. Although Hills is already a NetEnt customer, the machine deal represents a company first for NetEnt. Eriksson noted that the royalty level for the Hills machines was lower than online, but “long term, the retail segment will contribute positively to the growth.”

Mobile gaming revenue has grown to account for 13% of NetEnt’s gross gaming yield while Live Casino has “developed positively.” NetEnt inked five new Live Casino deals and launched Live Casino products with nine customers in Q2, resulting in a total of 27 Live Casino customers launched by the end of Q2 compared to just 18 at the end of Q1.

NetEnt continues to put pen to paper, announcing this week that it had inked an online casino content deal with UK-listed operator Bwin.party digital entertainment. The deal encompasses both online and mobile games and Bwin.party’s director of games Golan Shaked expressed confidence the additions “will significantly enhance our casino content offering.”

Looking forward, NetEnt is considering applying for a license to operate in Spain and is hungrily eyeing the nascent US regulated online gambling market. Initially, Eriksson said NetEnt intends to focus on the New Jersey market, by far the most profitable of the three states currently operating regulated online play. Eriksson expects NetEnt’s products will be available to New Jersey gamblers during the second half of 2015. The US invasion will be led by Björn Krantz, currently managing director of NetEnt’s Malta operations.

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