Quote from CEO,
Per Eriksson- Year 2013 has been a fantastic year and Net Entertainmenthas started to see the effect from several investments that were carried out during 2012 and revenues reached record levels. The fourth quarter is the strongest quarter during a fiscal year and revenues increased 25 percent compared to last year. The operating margin amounted to 31 percent. Fourth quarter 2013 -- Revenues for the fourth quarter increased by 24.5 % to SEK 180.1(144.7) million -- Operating profit amounted to SEK 55.6(37.2) million -- Operating margin was 30.9 (25.7) % -- Profit after tax amounted to SEK 56.1(34.0) million -- Earnings per share amounted to SEK 1.42(0.86) before dilution and SEK 1.41(0.86) after dilution -- Ten license agreements with new customers were signed, six new customers’ casinos were launched Full year 2013 -- Revenues for the full year increased by 19.8 % to SEK 630.7(526.7) million -- Operating profit amounted to SEK 179.7(153.1) million -- Operating margin was 28.5 (29.1) % -- Profit after tax amounted to SEK 167.1(136.1) million -- Earnings per share amounted to SEK 4.23(3.44) before dilution and SEK 4.21(3.44) after dilution -- 27 new license agreements were signed and 20 new customers’ casinos were launched -- Proposed transfer to shareholders is SEK 3.00(2.25) per share Important events in the fourth quarter -- An agreement was signed with bet365 one of the world’s largest gaming operators -- William Hill, Ladbrokes and Lottomatica were launched -- Eight agreements were signed for delivery of Live Casino. Five customers launched Live Casinoin the quarter -- Two agreements were signed with customers for delivery of mobile games. 13 customer launched mobile games in quarter Comments from Per Eriksson, President and CEO Year 2013 has been a fantastic year and Net Entertainmenthas started to see the effect from several investments that were carried out during 2012 and revenues reached record levels. The fourth quarter is the strongest quarter during a fiscal year and revenues increased 25 percent compared to last year. The operating margin amounted to 31 percent. Net Entertainmentalso broke a record in the number of game transactions, which increased by 31 percent in the fourth quarter. For the full year the number of game transactions increased 32 percent to 16.2 billion. From a sales perspective Net Entertainmentreached yet another record and we signed 27 new customer agreements during 2013 of which five with larger operators, so called Tier-1 contracts. Net Entertainment’s market share was 31 percent1(27 percent 2012) despite that the Company still has a relatively small presence in terms of revenues in Britain, which is Europe’s largest market. In 2012 Net Entertainmentstarted a large effort to establish the Company in this market and today we have signed agreements with several of the largest operators facing the British market These operators have not yet reached their full capacity for Net Entertainmentand it will take some additional time before they reach their full potential. I have high expectations that these customers will contribute positively to Net Entertainment’s growth in coming years. One of the Company’s most successful efforts has been casino games through mobile units. Net Entertainmenthas won several prices and received great appreciation from the Company’s customers and is known as one of the world’s most prominent suppliers within this segment. In the fourth quarter, 13 customers launched Net Entertainment’s mobile platform and in total, mobile gaming represented 9 percent of the gross gaming yield in Net Entertainment’s casino. Mobile games will continue to grow for Net Entertainmentand will continue to gain a significant role within the casino industry in the future. In 2014 we will continue to invest in more games and improve the product further to ensure we maintain our market leading position within this segment. Live Casinois the latest addition in Net Entertainment’s product portfolio which was launched in the beginning of 2013. The launch was gradual, starting with roulette followed by a new type of Live Casinoblackjack were the tables can have an unlimited number of simultaneous players and finally traditional blackjack was launched in the fourth quarter. The market for Live Casinois growing rapidly and I am convinced that we will see good results from the product as more customers launch and marketing among the operators increase. Net Entertainmenthas signed agreements with a total of 30 operators of which 14 have launched the product. Regulation of online gaming is expected to continue during 2014 and if the prerequisites are right for the Company there is a high probability that we will enter more regulated markets in coming years. We follow the developments in the US and discussions are taking place with both operators and suppliers and we are waiting for the right time, the right states and the right conditions before establishing the Company on the US market. Net Entertainmenthas an eventful year ahead with many exciting projects and challenges. I am convinced we will strengthen our position further on the market and maintain good growth with good profitability. 1The market share is based on the gross gaming yield from Net Entertainment’s customers in relation to the european online casino market in 2013 which has been estimated by H2 Gambling Capitalin January 2014. The underlying data has been adjusted as H2 Gambling Capitalin 2013 made a re-classification which has now been excluded to be comparable with year 2012. For additional information please contact; Per Eriksson, President and CEO Net Entertainment: Phone +46 8 57 85 45 00 email@example.com About Net Entertainment Net Entertainmentis a premium supplier of digitally distributed gaming systems used by some of the world's most successful online gaming operators. The Net Entertainmentcasino is a complete gaming solution comprising both a complete management platform and a full suite of high quality games. Operators are provided a customized casino that is easily integrated ensuring short time to market and a cost efficient operation. Net Entertainmentis listed on Nasdaq OMX Stockholm (NET-B). More information about Net Entertainmentis available at www.netent.com. Copyright © 2014 OMX AB (publ).