Igaming content provider Net Entertainment recorded a Q3 2014 revenue increase of 41.8%, posting gaming revenues of SEK 217.2 (£18.7 million) (Q3 2013 – SEK 153.1 million).
Increase gaming revenues were supported by an increase operating profit of SEK 73.4 million (£6.3 million) for the period ending 30 September. Net Entertainment senior management stated that the content provider had witnessed an improved operating margin of 33%, helping the company post after tax profits of SEK 67.5 million (£5.8 million)
Net Entertainment continues its strong 2014 performance, with the content provider seeing 2014 total revenues increase 35.5% to SEK 610.60 million (£53 million).
Netent further announced that it had signed 21 new license agreements and that it had entered 22 new casino content partnership in 2014. With these figures senior management are confident of hitting all 2014 corporate expectations.
Per Eriksson, President and CEO commented on company performance
The third quarter showed strong financial development and revenues increased by 41.8 percent compared to last year. The operating margin was 33.8 percent. New customers in combination with a positive currency development contributed positively but the primary reason to the revenue increase was due to positive underlying growth with NetEnt’s customers. The operating margin showed a positive development as a result of the revenue increase but also due to the vacation period which reduced the resource cost.
NetEnt is driving several new large initiatives where the pace has accelerated in the third quarter. The preparations for an entry in North America have started with New Jersey as the first state in the US where NetEnt will apply for a license. We are also preparing the license application for Spain. I expect that the company is live in Spain during the first half of 2015. We have also focused on upgrading
NetEnt’s platform in 2014, work that is expected to continue during 2015. The purpose with the platform development is to secure our high hosting capacity as the company grows its customer base and to allow for a faster and more efficient distribution of new functionality and games to the operators.