Entraction H1: operating profit up 122%
Entraction has more than doubled operating profit, the company's half-year results reveal, despite a slow down in the Swedish operator's second quarter.
ENTRACTION HAS more than doubled operating profit, the company’s half-year results reveal, hitting SEK 27.3m (2.7m), an increase of 122% on the SEK12.3m the Swedish operator recorded at the same point last year.
The six month results also show earnings before interest, tax, depreciation and amortisation (EBITDA) up 81%, to SEK33.9m, from SEK18.7m.
Entraction chief executive Peter à ström said: “We continue to show a highly positive cash flow, which gives us freedom of action and security in a changeable world.”
However Entraction’s first quarter results, also published today, show a slow down, with a healthy but less extreme rises in operating profit of 57.2% to total SEK11m, and a rise in EBITDA of only 41%, to SEK14.5m.
The slow down in the second half of the period was evident across the whole of Entraction’s results. Net sales, for instance, were up 45% in the half year, totalling SEK 227.8m from SEK157.2m at mid-year 2008, but were up only 37% to SEK 106.8m for the quarter, from SEK77.6m at Q2 2008.
The second half of 2009 will be boosted via Sportingbet having joined the Entraction network this month, a deal that will run alongside Sportingbet’s prior deal with Boss Media until February 2010. “Although our strategic decision to invest in large customers means longer pre-sales processes, the result is long-term and more profitable partner agreements,” Astrom said.
Astrom said that Entraction will launch bingo with at least five more customers during autumn, and “expects the product to start bringing more interesting volumes during next year.”
The company is also due to launch a new betting product early next year which includes live betting this year following a deal with Evolution Gaming for live casino this month.
Growth in new markets continued, with the Nordic region’s proportion of sales fell from 65% to 55%, following growth in the Spanish and Italian markets.