NetEnt in a ‘stronger position’ amid aim to increase igaming market share

NetEnt has praised continually growing US revenue, all-time high live casino numbers and the Red Tiger acquisition which has “exceeded our expectations,” as the firm publishing its latest financial report.

Displaying a fourth quarter revenue increase of ten per cent to SEK 512m (2018: SEK 465m), of which SEK 96m was contributed from Red Tiger which was acquired by the firm in September. NetEnt’s full-year revenue was nudged forward slightly to SEK 1.79bn.

On a pro forma basis total revenues including Red Tiger decreased by 4.8 percent compared to the corresponding period of 2018 due to weakness primarily in Sweden and Norway, and partially offset by revenue in the US which “continued to grow significantly”.

EBITDA for the quarter amounted to SEK 261m, a 27.9 per cent rise from SEK 204m, of which SEK 70m was contributed by Red Tiger, with a 4.7 per cent increase to SEK 855m (2018: SEK 816m) felt on a full-year basis. Earnings after tax dropped across both time frames to SEK 113m (SEK 137m) and SEK 429m (2018: SEK 577m).

Furthermore, NetEnt comments that it plans to “continue according to plan” regarding manoeuvres in the live casino space, with all-time high-time high players numbers recorded.

Therese Hillman, group CEO, stated: “We are now expanding the studio in Malta and will soon be offering physical tables to our customers for the first time, as an alternative to our tables with blue screen technology, which should contribute to increased revenues from live casino in 2020.”

Continually lauding the impacts of the Red Tiger purchase, Hillman stated: “Red Tiger was acquired with the objective to create shareholder value through increased growth and profitability for the new group”.

Adding: “Red Tiger adds complementary competence to the NetEnt group and we are running a number of common projects at full speed to deliver a significantly enhanced customer offering and player experience.”

Buoyed by branded games in collaboration with Gordon Ramsay, Street Fighter and Fashion TV that were unveiled recently, Hillman concluded with a brief insight into the firm’s 2020 outlook:”Backed by our ongoing focus on efficiency and the acquisition of Red Tiger, we are entering the new year in a stronger position.

“Our global distribution and two strong brands give us the right basis to increase our market shares in online casino. We see good conditions for NetEnt to deliver growth in 2020, supported by our combined game portfolio and live casino.”