Olympics And Strong Currency Pull Swedish Online Casinos Down

Swedish internet casino software developer Net Entertainment AB revealed that it expects reporting lower than expected revenue growth year-on-year for the third quarter in 2012.

The Stockholm-based company blames the delays of the launch of two large customers for the loss of revenue. They also experienced a slowdown during the months of July and August, saying their customers allocated more marketing spending towards internet betting in Sweden, cutting down supporting on other online gambling games.

Net Entertainment also names the Swedish Krone’s strength against currencies, including the Euro as one of the reason for the decrease in revenue.

The trading update reported: “The majority of revenues are invoiced in Euro, the revenues are reported in Euro and are then calculated to Swedish Krona for the group’s reporting. Since the end of the previous quarter, the Swedish Krona has strengthened significantly towards the Euro, which affects Net Entertainment’s revenues negatively in the third quarter.”

Net Entertainment expects revenue growth for the third quarter of 2012 to be about ten percent lower than previously calculated.

The Swedish company counts with a rise in revenues in the fourth-quarter of this year. They hope on the completion of their grand Live Casino project, in full accordance with the Swedish gambling laws, and an entry into the UK market with software development as major contributors to success.

Swedish firm commented: “As the company grows and different authorities set increased requirements, the need to further develop Net Entertainment’s processes and systems increases, which increases costs during the fourth quarter.”

The Stockholm company also noted: “Long-term Net Entertainment is in a good position and the company estimates that the strategic efforts made on Live Casino, the UK entry and mobile games in combination with slot games being available in Italy will generate good revenues during 2013.”