Net Gaming expects limited impact from coronavirus outbreak
Net Gaming Europe expects the coronavirus outbreak to have a limited impact on business operations, estimating Q1 revenue for 2020 to be 5% lower than Q4 2019.
In its business update, the affiliate said revenue for the three months to 31 March is expected to be €3.1m ($2.4m), while EBITDA should come in at €1.7m, an 11% quarter-to-quarter decrease.
The affiliate also estimates 61% of the company’s Q1 revenue will be generated from Europe. Casino should contribute 73% of total revenue, with 16% from poker.
It went on to add casino and poker demand has been unaffected by the coronavirus outbreak, which is expected to continue into Q2.
Due to sports betting only amounting to 9% of total revenue, Net Gaming expects the postponement of the sporting calendar to have a limited impact and any revenue is expected to be delayed until H2 2020 or 2021.
Net Gaming President and CEO Robert Andersson said: “We are continuously evaluating the current situation and continue to adapt our organisation to the ever-changing circumstances.
“The length of current disruptions to sports events globally remains hard to predict. However, Net Gaming expects limited financial impact from sports betting and remains committed to its long-term strategy of further growth within the betting vertical.”
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