Net Ent 2009: profit up 35%
Net Entertainment's full-year profit after tax is up by more than a third on the year before, the Swedish software company's stellar year-end results reveal, soaring 35% to hit SEK107.7m; although the company failed to maintain the surge in the second half of the year...
NET Entertainment’s full-year profit after tax is up by more than a third on the year before, the Swedish software company’s stellar year-end results reveal, soaring 35% to SEK to hit 107.7m (10.5m, $14.4m, £9.2m), from SEK80m in 2008.
Operating profit is up 37% to SEK32.4m, from SEK87.8m the year before, while revenue for the full year increased by 46% to SEK300.1m, from SEK205.6m.
However while shining, the figures mark a failure to continue the momentum seen at Net Ent’s half-year stage, when both profit was up by more than half. Profit after tax for the final quarter of 2009 was up by only a more moderate 19.5%, hitting SEK32.4m from SEK27.1m for the same period in 2008; while revenue for the fourth quarter rose a smaller if still enviable 37.8% to SEK85.4m, from SEK62m.
However president and chief executive Johan Ãhman argued that the fourth quarter showed stronger performance than the third, and that the upward trajectory has continued into 2010.
Ãhman said: “We saw strong growth at the end of 2009 with a revenue growth of 12% during the fourth quarter compared to quarter three. The increase was the result of organic growth by existing licensees. The number of game transactions increased by 23% during the same period. Combined, this result shows that there is a strong market development and demand for our products. This positive trend has continued in January.”
As reported on EGRmagazine.com, the company’s growth in 2009 was recognised by traders, with Nasdaq Stockholm moving Net Ent from the bourse’s small to mid-cap market this month, less than a year since the shares introduced, after a rise in the share price of more than 100%.
Regarding 2010, Ãhman added: “We have a solid order backlog comprising, for example, Expekt and Microgame which, together with Sportingbet rolling out CasinoModule on additional geographical markets, will create new license revenues.
“The implementation of Seamless Wallet is ongoing with our major licensees. This functionality enables operators to place Net Entertainment’s games in other parts of the web portal than the casino and thereby offer games to a larger share of their players, creating a foundation for increased gaming revenues from new player segments. CasinoCafé had positive development during the fourth quarter with increasing volumes; however, from a low level. Delta Invest continues the roll-out of CasinoCafe, which has been slower than expected, with focus primarily on the Ukraine market.”
For more on Net Ent and other Swedish egaming businesses, see yesterday’s Investing in egaming? Look north blog post from analysts Redeye’s David Myslinski.
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