Net Entertainment has released their half year results for 2011 (January to June). Their focus has been new products and markets whilst experiencing continued growth.
The results of the second quarter of 2011 were as follows:
- Revenues for the 2nd quarter increased by 12% to £9.528 million (SEK 99.0 million)
- Operating profit amounted to £2.595 million (SEK 27.2 million)
- Operating margin was 27.2%
- Profit after tax was £2.394 million (SEK 25.1 million) – down 17% from £2.899 million
- Earnings per share were 6p (SEK 0.64) before and after dilution
- 1 new license agreement signed and 2 casinos launched in 2nd quarter
The results of the first 6 months of 2011 were as follows:
- Revenues for the first 6 months increased 10.2% to £18.6 million (SEK 195.1 million)
- Operating profit amounted to £5.097 million (SEK 53.2 million)
- Operating margin was 27.4%
- Profit after tax was £4.574 million (SEK 48 million) – down 21.8% from £5.85 million
- Earnings per share were 11.5p (SEK 1.55) before and after dilution
- 2 new license agreement signed and 4 casinos launched in first 6 months
Johan Öhman, who is the President and CEO of Net Entertainment, said the development in the second quarter was as a result of “growth from the existing customer base”. Revenues increased 25% (excluding France) and the number of game transactions increased by 30% compared to 2010.
He went on to say that the video slot Frankenstein was released at the end of June which is based on the classic movie. He was positive about the development within the company in a year that has seen lower gaming activity throughout the industry.
Öhman also said the development of mobile casino games was according to schedule and they plan to launch the first of their games during 2011. Net Entertainment sees the mobile channel as an “increasingly important distribution channel going forward”.
He was enthused with the opening of the Italian online casino market which will take place in July. They have a significant market share in Italy and will hope to maximize their position once their casinos are approved. Overall, Öhman was happy with the results and expects to see the results from the investments they’ve made in the company in the subsequent quarters.