Published: 30.04.2020, 14:25
2 min read
Thanks to NetEnt’s proactive efforts to ensure stable operation for both the short and long term, the company should come out of the coronavirus pandemic with minimized losses. NetEnt has promised to “ensure good development” of all its projects in today’s “exceptional situation” provoked by COVID-19.
The company, which is famous for developing casino software, recently released an interim report for the period from January to March of 2020. Based on this report, NetEnt claims that its acquisition of software developer Red Tiger led to results that have exceeded all expectations.
NetEnt CEO Therese Hillman says that the coronavirus has not affected the company’s performance in any way. It is also a credit to the entire global community, which is actively working to combat the spread of the virus. Hillman said it is difficult to predict the outcome of the current situation for the worldwide economy and the gambling industry in particular. However, thanks to the trend towards the digitalization of the entire gambling industry, NetEnt can expect quite active growth.
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NetEnt recently made a proposal that would reduce the company’s costs and improve revenue in the 2nd half of 2020. One item in the proposal was the Red Tiger acquisition, which would improve NetEnt’s revenue over time. Even though the merger had a significant up-front cost, it should bring in huge earnings in the long run. One cost-cutting measure in the proposal was for NetEnt to reduce its staff by 120 people. The Stockholm office would receive most of these cuts. Hillman expects that the direct profit from the acquisition should be approximately SEK 250m per annum.
Hillman also said that NetEnt had increased the number of tables available in its Malta venue. Furthermore, the company has recently upgraded its mobile game UI. Hillman continued on to say that operators and gamers show a growing interest in NetEnt products. The company has seen record numbers of new players every month of 2020. Hillman is optimistic about the rest of 2020. She believes the acquisition of Red Tiger, s NetEnt’s entrances to regulated markets, a solid line of products, and recently introduced opportunities for live casinos will ensure the company’s revenue growth.
With 12 new slots released since the beginning of the year, NetEnt’s gross revenue increased by 23.9% to SEK 229 million. All these figures really back up the company’s claims of the possibility of rapid growth throughout the rest of 2020.
NetEnt saw a substantial jump in profits in March of 2020, which was mostly due to strong performances in the UK and US markets. Norway and Sweden, however, were labeled as negative developments. This follows NetEnt’s earlier comments that the Swedish gaming license process needs to be adjusted.
