NetEnt hails Red Tiger acquisition as Q4 revenues jump 10%
Supplier highlights increased live casino focus in driving “all-time highs” in player numbers to the product
Online casino provider NetEnt has said the performance of its Red Tiger acquisition has “exceeded its expectations”, contributing to a 10% year-on-year rise in Q4 revenues to SEK512m (£41m).
Company EBITDA reached SEK261m (£20.9m) during the quarter, an increase of SEK57m (£4.5m) on the same period of last year, while EBITDA margin rose from 43.9% to 51%.
The Stockholm-listed operator confirmed that Red Tiger had contributed SEK126m (£10m) to NetEnt’s Q4 revenues as well as SEK93m (£7.4m) to its EBITDA.
During the quarter, NetEnt released 13 new slots titles, more than double the number launched during Q4 2018, while Red Tiger unveiled nine titles during the same period.
NetEnt gamewin split by region Source: NetEnt
NetEnt Group CEO Therese Hillman said: “Since December, we have seen all-time highs in the number of players for our live casino, which supports our belief in growing revenues from this segment.
“Since the acquisition, Red Tiger has exceeded our expectations and now forms a vital part of our ongoing improvement efforts within the NetEnt Group.
“We see good conditions for NetEnt to deliver growth in 2020, supported by our combined game portfolio and live casino.” Hillman added.
The group’s full-year 2019 revenues rose by just under 1% year-on-year to SEK1,793m (£143.6m), with a corresponding rise of just under 5% in the supplier’s EBITDA, which rose to SEK855m (£68.4m) and a margin of 47.7%.
NetEnt current portfolio mix- Source:NetEnt
In December, NetEnt launched its first content aggregation service, NetEnt Connect, later confirming Red Tiger as its first supplier.
Earlier this month, three more suppliers were added to the platform, including Scout Gaming Group, UK-based Games Inc. and G; the firm formerly known as Gluck Gamevy.
In addition, NetEnt has enhanced its live casino offering, launching a new ‘auto-roulette’ studio in December.
Speaking about its increased focus on the live casino brand, Hillman said feedback from consumers had been positive and had contributed to “all-time highs” in player numbers using the live casino brand.
“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,” Hillman added.