NetEnt & Evolution Gaming Post Stunning Q2 Results
NetEnt AB and Evolution Gaming, the two casino games behemoths currently locked in talks over a possible merger, both posted outstanding results for the second quarter of the current year. This all most likely as a result of a super-hike in online casino games revenue due to a lack of sports events to bet on.
NetEnt, for one, managed to post quite the Q2 performance. The developer/supplier’s total revenue posted for the first half of this year showed a year-on-year increase of an incredible 30.2%. This means revenue posted in excess of $120.5 million. Of this amount, licensing agreements proved responsible for at least $116 million of the total revenue reported for the mentioned period.
Rising costs did however cause a significant decline in profits. These resulted in a net-profit crash of 29% when compared to last year. NetEnt for the period Q2 of 2020 posted net profits totalling $18.8 million.
All Good, All Round
Increased costs weathered by NetEnt also resulted in depreciation and amortisation increasing by 52.3%, up to an estimated $23.8 million. Increased financial expenses resulted in quite the difference too, at an increase from $3 million all the way up to $22.8 million. It should however be mentioned said that this was posted for the same period during which NetEnt acquired Red Tiger Gaming, and therefore, not unexpected a decline.
Even so, according to NetEnt Chief Executive Therese Hillman, Q2 remains a record-quarter for the games giant. NetEnt and Red Tiger Gaming both posted strong results for the reported period, confirmed Hillman. This resulted not only in record-style revenues, but also in increased earnings and an improved cash flow for the supplier.
Also notable is that at least 10% of all gross gaming revenue reported for the mentioned period, resulted from the company’s presence and performance in the US. Slots came out on top at 89% of the revenue generated, with table games having been responsible for the remaining 11%.
The UK remains NetEnt’s top-performing market.
October Acquisition Deadline
Evolution Gaming too, continued its stellar performance as seen so far this year. With Q2 operating revenue up by 50% when compared with the same period during last year, they made it all the way up to €128.3 million ($146.6 million) in terms of bottom-line revenue performance.
A short while ago Evolution Gaming made public its bid to acquire at least 90% of NetEnt AB. Both companies remain as focused as ever on US expansion.
NetEnt is expected to provide feedback regarding Evolution Gaming’s offer by October 26.