Net Entertainment boosted by European growth in Q1
Online casino games provider Net Entertainment has cited its success in the European market as one of the main drivers behind year-on-year growth in revenue and operating profit during the three months to March 31, 2014.
The company posted revenue of SEK188.4 million (€20.7 million/$28.7 million) in the first quarter of 2014, an increase of 26.7% on the SEK148.8 million achieved in the corresponding period last year.
Net Entertainment also reported a jump in operating profit, which grew from SEK41 million in Q1 of 2013 to SEK51.2 million in the latest quarter.
Elsewhere, operating profit dropped slightly from the 27.5% last year to 27.2% in the first quarter of 2014 while profit after tax increased to SEK46.1 million, up from SEK33.8 million in 2013.
During the quarter, Net Entertainment was able to strike a number of key deals, including a partnership with online gaming systems and software provider GameAccount Network in a move that helped strengthen its presence in the Italian market.
The company also agreed six deals with customers for delivery of mobile games while 10 customers launched mobile games during the first quarter.
In addition, Net Entertainment also signed 10 agreements for the delivery of its live casino and four customers were able to launch live casino during the period.
Per Eriksson, president and chief executive officer of Net Entertainment, said: “Net Entertainment had a very good start in 2014 with a growth of 26.7% while strengthening its position in Europe by signing several new customer agreements and launching several new games.
“Regulated markets is a strategic focus area for Net Entertainment and we are investigating the possibility for establishment in Holland and Spain which are currently regulating online gaming and we are preparing the company for the re-regulation in Great Britain which is expected to take place during the second half of 2014.
“Net Entertainment has had a strong start in 2014 and I am convinced that we will see a continued eventful year in the form of new markets, new customer agreements and new products for the company.”
Related article: GameAccount targets Italian market with Net Entertainment