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NetEnt Posts Its Full-Year Results, Reveals a Slight Revenue Growth
- February 20, 2020 By Riley Wilson -
Swedish online slot specialist NetEnt has posted its financial results for 2019, revealing it has managed to generate more revenue when compared to 2018.
According to available information, NetEnt recorded €169.3 million during twelve months of 2019, representing a modest year-on-year improvement.
Red Tiger Gaming Acquisition Had a Positive Impact
It should be noted that these figures were much better than expected, as it was estimated that slower performances in the Scandinavian market (primarily Sweden and Norway) would have a negative impact on the full-year results. However, the acquisition of Red Tiger Gaming has managed to offset these weaknesses – at least up to a certain point.
Royalties accounted for more than 95% of the overall revenue or €161.7 million – a drop of 1% from 2018. Setup fees contributed €5.3 million, improving the previous full-year figures by 10.2%. Other revenues also improved, bringing a total of €2.48 million in revenue.
Commenting on the results, Therese Hillman, Chief Executive Officer at NetEnt, pointed out that the market in the US saw its revenue go up when compared to Sweden and Norway. She also revealed that the purchase of Red Tiger Gaming brought additional €1.2 million in revenue.
Hillman added this acquisition represented a vital part of the company’s current improvement efforts.
Expenses on the Rise
NetEnt also revealed its operating expenses had grown by 7.1% to €119.2 million. The company’s personnel are still the biggest expense, although this item did drop by more than 8% to €46.4 million. At the same time, the costs of depreciation and amortisation went up to 51.8% to €30.9 million, resulting in a 12% drop in operating profit – €49.99 million.
With financial expenses increasing to €12.2 million, the overall pre-tax profit dropped by 24.1% to €44.6 million.
NetEnt’s full-year profit reached €40.6 million, which is 25.7% less when compared to the results from 2018.
One of the leading developers of online casino games also posted its Q4 2019 numbers, revealing a 10% rise in revenue to €48.4 million. As these are good figures, the company’s governance is optimistic about 2020.
Hillman went on to say NetEnt and Red Tiger Gaming would be looking to increase their market presence in the online casino segment and added that the group’s portfolio was expected to deliver a rise in revenue in 2020.
We can also expect a large number of new launches during the year, which is sure to draw more player to online casinos powered by NetEnt.