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NetEnt Ends Q3 with a Drop in Revenue
- November 1, 2019 By Riley Wilson -
The award-winning producer of quality casino content NetEnt has just announced its latest results, revealing the company’s performance in the third quarter of this year.
According to available information, NetEnt generated revenue of €41.1 million during the three-month period that ended on September 30, 2019. This represents a drop of 10% when compared to the corresponding quarter of 2018.
“Weak Developments” Are the Main Culprit for the Fall
This figure includes adjustments for the purchase of Red Tiger, as well as changes in currency.
Commenting on the developer’s quarter performance, NetEnt Chief Executive Officer Therese Hillman said the primary reason for lower revenues had been attributed to continued weak developments in the Swedish market.
NetEnt’s report revealed that Sweden had accounted for 7% of the drop, while two other markets that negatively impacted the firm’s revenues were Norway and the UK.
EBITDA was 15% down from last year, reaching €18.3 million, while profit after tax was €9.1 million, which represents a significant decrease of 60%.
The Purchase of Red Tiger
Following the acquisition of Red Tiger, the developer contributed to NetEnt’s results with €2.8 in revenues, €1.87 million in EBITDA, and €1.78 in operating profit.
Hillman further said the most significant event of the quarter had been the strategically important acquisition of Red Tiger and pointed out that since the two companies complement one another well, together they could attain a stronger market position and realize economies of scale throughout their business.
The CEO stated the main goal of the acquisition was to drive growth and added it could bring at least €13.9 million in synergies – every year.
NetEnt, who recently launched its new video slot titled The Wolf’s Bane, recorded solid performance in the market across the US, especially in New Jersey, while launching in Pennsylvania during this quarter. According to estimates, revenues from these states could become a driving force for years to come, and significantly influence the company’s results in the coming years.
Hillman said the future releases, including those from Red Tiger, would contribute to solid performance in 2020.