Evolution and NetEnt Report Increased Earnings Ahead of Proposed Merger

Online gambling technology suppliers, Evolution and NetEnt, have released reports for the first three quarters of 2020 and the numbers are looking great for both companies ahead of their proposed merger.

Evolution, formerly known as Evolution Gaming until a rebrand that took place earlier this month, generated revenues of 140 million euros in the third quarter of 2020, and that’s a growth of 48% compared to the same period of 2019.

The profits were also quite impressive, amounting to 79.4 million euros, which is double compared to what they managed to get during the same three months last year.

On the other hand, NetEnt reported an increase in revenues of almost 17% in the third quarter compared to the same period of last year, they generated around 50 million euros.

Both brands are placing North America at the center of their development strategy for the coming years. Over the past couple of weeks, Evolution penned agreements with Wynn Interactive and William Hill, both for the United States market.

NetEnt also increased their profile in the United States recently through deals with Wind Creek Online and The Cordish Companies. Moreover, their games have also been available in Canada since 2018, through an agreement with International Game Technology and the British Columbia Lottery Corporation.

Speaking about the company’s report for the first 9 months of the year, Evolution Chief Executive Officer Martin Carlesund emphasised the success of the brand’s live dealer titles: “Our new game show style game – Crazy Time – was launched globally on July 1st and has been a great success. Players enjoy the groundbreaking game format and possibility of big wins.

It is our most successful game launch to date. Instant Roulette was also launched during the quarter and coming up in Q4 is the launch of Craps. We continue to build our portfolio of unique innovative games both within traditional table games as well as game shows.”

Therese Hillman, NetEnt Chief Executive Officer added: “During the quarter we continued to invest in our strategic growth areas USA, Red Tiger and Live Casino, while driving cost and revenue synergies from the ongoing integration between NetEnt and Red Tiger.

Given our new lower cost base, the operating leverage of our business and our strong product pipeline, we expect continued strong growth in earnings and cash flow for the rest of the year and beyond.”

The two companies are still set to merge as Evolution have made an offer to acquire NetEnt, a deal that would create a real industry giant.

Sources:

“Interim Report January-September 2020″. Evolution. October 22, 2020.

“Interim Report January-September 2020“. NetEnt. October 22, 2020.