NetEnt has consistently praised growing US revenue, ever-high live casino numbers and the Red Tiger acquisition that has “exceeded our expectations,” as the company publishes its latest financial report.
An increase in revenue of ten percent in the fourth quarter to SEK 512 m (2018: SEK 465 m), of which SEK 96 m was contributed by Red Tiger, acquired by the company in September. NetEnt’s full-year revenue was slightly nudged to SEK 1.79bn.
On a pro forma basis, total revenues from Red Tiger declined by 4.8 percent compared to the corresponding period of 2018 due primarily to weakness in Sweden and Norway, and partially offset by revenues in the US that “continued to grow significantly.”
For the year, the EBITDA amounted to SEK 261 m, an increase of 27.9 percent from SEK 204 m, of which Red Tiger contributed SEK 70 m, with a rise of 4.7 percent to SEK 855 m (2018: SEK 816 m) felt throughout the year. The after-tax profits fell to SEK 113 m (SEK 137 m) and SEK 429 m (2018: SEK 577 m) across both time frames.
In addition, NetEnt comments that it plans to “continue according to plan” with all-time high-time player numbers registered in the live casino space about manoeuvres.
The Group CEO, Therese Hillman, 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.”
Continuously lauding the impacts of buying Red Tiger, 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 licenced games recently launched in partnership with Gordon Ramsay, Street Fighter and Fashion TV, Hillman concluded with a brief glimpse into the company’s 2020 perspective: ”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.”