Evolution gaming doubles profits prior to NetEnt acquisition

Evolution Gaming and NetEnt have reported equally significant year-on-year growth rates amid the recently announced proposal of the union. Last Friday, both of the Swedish gambling services providers published their second-quarter financial reviews. The releases were separate with both Evolution and NetEnt posting individual reports ahead of the proposed uniting in efforts to create a single online casino and service providing powerhouse.

The two documents published individually by the companies are rather positive and show significant increases. The latter is primarily caused by the coronavirus pandemic which led to physical casino business entering a complete standstill. The number of online platforms is soaring as people are no longer able to use physical gambling services. Nevertheless, due to the skyrocketing number of scams within the sector, customers are more careful when depositing with real money than ever before. Companies like Evolution are still not as affected by the increased cautiousness of the customers due to a high reputation.

The leading gambling service provider Evolution reported a 50% soar in revenues, hitting an estimated €128.3 million within only three months, ending June 30th. In the meantime, earnings skyrocketed by a whopping 90%, reaching €81.1 million, whilst the profit more than doubled to an astounding €70.4 million. Evolution’s CEO Martin Carlesund said that the growth would have been even higher if the company had not reduced table capacity across the network. The decision was made due to the reduced demand for their services amidst the novel coronavirus pandemic.

The company reported increases across the entire network, except for the United Kingdom. The country has been the worst hit in Europe in terms of both the total infection numbers and the death toll. As a result, the casino industry was practically completely shut for months since early march, resulting in plummeting revenues for both online and physical gambling operators across the country. Naturally, Evolution was not an exception from the big picture that we see in this nation. According to the financial report released on Friday, Evolution revenues plummeted by €2.1 million year-on-year, hitting €10.6 million in the second quarter of 2020.

On the other hand, nordic markets saw important gains. The Evolution operations within this region soared by €700 thousand year-on-year, reaching €6.7 million in the same period of time. Generally, the European market saw the biggest increase in revenues within the second quarter. The whopping 42.4% increase made the market land at €62.4 million, a record-breaking number for the company’s European operations. North America also witnessed a major improvement, soaring 81% year-on-year, reaching the bar of €8.5 million while Asia tripled to €28.4 million.

On the other hand, NetEnd, the other side of the potential cooperation also published jaw-dropping results in the second quarter. The general revenues soared by almost 37%, hitting SEK573 million or €55.4 million within the reported period. Earning also saw an important growth, ending up growing by 50% to SEK299 million. Nevertheless, the after-tax number looks smaller, reduced by 26% to SEK88 million. Partly, the reduction was caused by its current cooperation with the Red Tiger Gaming, while taking significant costs dealing with the Evolution’s future partnership.

NetEnt’s CEO Therese Hillman explained the pattern of the company’s financial state in a short comment. According to her, the operations were boosted due to the COVID-19 pandemic. With billions of people stuck at home and no option of visiting a physical venue, people headed towards the online platforms. Therefore, April and May this year were particularly profitable for the company’s overall growth. Hillman also stated that the Nordic markets kept underperforming, yet Denmark, Sweden, Norway, and Finland started re-opening and getting back to normal in early June.

Martin Carlesund also commented on the acquisition process of NetEnt. Despite the global pandemic leading to unprecedented economic downfall globally, the negotiations between the two sides of the potential partnership continue. According to him, the princess continues as planned. All the stakeholders are expected to accept the deal by October 26th. In the meantime, the deadline for the transition is set on the 2nd of November. Currently, Evolution shares are up 2% on the Stockholm Exchange. The latter is the largest exchange in the Nordic region. NetEnt, on the other hand, is trading up 1%.

Follow us on

Check Also

BetStarters enhance casino offering with Spinmatic deal

Casino and sportsbook platform BetStarters boosts its game portfolio signing a partnership deal with casino …

Princess Casino boosts casino portfolio with Relax Gaming deal

Game developer and supplier Relax Gaming is expanding its Romanian footprint, inking a new casino …

Leave a Reply

Your email address will not be published. Required fields are marked *

Show Buttons
Hide Buttons