Net Entertainment recently released its earnings report for the last quarter of last year, from October to December. The report has shown favourable increases, and good profit margins. In fact, Net Entertainment revenues grew substantially in 2014.
NetEnt Revenues for 2014
Net Entertainment's operating profit increased substantially. The profit after tax equaled SEK 77.1 (53.5) million. The revenues for the fourth quarter increased by 33.8%. Earnings per share before dilution equaled SEK 1.92 (1.42), and earnings per share after dilution equaled SEK 1.93 (1.41).
When looking at the full year, revenues increased by 35%, with the profit after tax equaling SEK 243.2 (167.1) million. Earnings per share over the full year equaled SEK 6.10 (4.23) before dilution and SEK 6.09 (4.21) after dilution. The proposed transfer to Net Entertainment shareholders is SEK 5 (3.00) per share.
There were a number of important events that took place in the fourth quarter. There were ten new license agreements that were signed. During this time, NetEnt customers launched six new casinos. Net Entertainment also developed a casino game in HTML5 so that it would be compatible with both mobile and desktop platforms. The game that was developed entirely in HTML5 is The Invisible Man, a branded slot that is based on the Universal Pictures movie. In the past, desktop games were developed in Flash.
In addition to these events, Net Entertainment software is now being used in the regulated Italian market. This came about after NetEnt reached a partnership agreement with GameAccount Network. NetEnt games were then released at the Eurobet casino.
Net Entertainment's CEO Comments
Per Eriksson, the Net Entertainment President and Chief Executive Officer, had the following to say regarding the 2014 earnings: "2014 was another fantastic year for NetEnt with revenues, operating profit, cash flow, and proposed transfer to shareholders all reaching new record levels. Revenue growth for the full year, even adjusted for currency changes, is the highest ever for the Company, with a continuing strong operating margin. New customers and favorable currency changes contributed positively, but the main driver of the increase in revenues and earnings was solid underlying growth among our customers."
He further commented: "I am convinced that NetEnt's focus on developing world-class entertaining and thrilling games makes us well positioned to keep growing in existing and new markets."
Mr. Eriksson also noted that NetEnt is preparing to enter other markets, such as the Spanish and the North American markets, in 2015. The company is expecting 2015 to be another year of growth and profitability.