2020_8_pragmatic.gif
2020_8_pragmatic.gif
2020_8_pragmatic.gif
CLOSE
× Gambling News In-Depth iGaming Calendar Connections GI Friday Trafficology GI Magazine
GGA 2020 AffiliateCon
NEWS 10 September 2019

NetEnt share price soars as market backs Red Tiger acquisition

By Tim Poole

Market confidence in Swedish gaming supplier NetEnt has risen considerably following its £220m ($272.1m) acquisition of Red Tiger Gaming.

After last week’s announcement, Gambling Insider posed the question of whether the M & A will solve NetEnt’s existing problems.

But investors have so far reacted well to the deal, with the company’s share price up from SEK 25.60 ($2.63) at the close of trading last Wednesday to around SEK 33.00 this week.

A financial analyst told Gambling Insider: "As you can see from the share price, it’s been quite well received. It’s up 30% in one week. It was on a five-year low before that. It’s come from a quite depressed share price level."

Investors have so far recognised the strategic benefits of the merger, with Red Tiger boasting market share in both Asia and the UK, suiting NetEnt’s current aims.

At the same time, the acquiring supplier provides Red Tiger with a strong presence in the Nordic countries, as well as a bridge into the US.

Top-line synergies are expected and the market can equally see the need for consolidation in the slot supplier industry, where smaller firms face steep costs and tight regulation.

A financial analyst explained: "NetEnt has had negative organic growth for two quarters and, with the inclusion of Red Tiger, which I think is growing 50% plus, the mix of those two will return NetEnt to organic growth.

"Perhaps not Q3 but from Q4 onwards and definitely from 2020, it’s going to look a whole lot better for NetEnt.

"On top of Red Tiger, NetEnt’s also making a push into live casino and in the US in general. All in all, it should definitely return to pretty good growth next year.

"It could be a turning point for NetEnt both operationally and from a share price point of view."

RELATED TAGS: Financial | Industry | Feature
DISCUSS THIS ARTICLE
IN-DEPTH 18 February 2020
A decade to remember
READ MORE

PREMIUM CONNECTIONS
Efbet
Systems and Software
We have partnered up with deVRealm in a joint venture for the development of new gambling technology platforms. The primary ...
1xPartners
Affiliate
1xPartners is the innovative and exciting affiliate program offered by 1xBet, one of the world's leading sportsbooks and casinos. Offering ...
Newgioco Group
Systems and Software
Newgioco Group, Inc. (OTCQB:NWGI) is a premier leisure betting technology company providing regulated online and land-based gaming and sports ...
Digital Isle of Man
Legal and Jurisdictions
Digital Isle of Man is responsible for the thriving Digital sector in the Isle of Man, spanning the Island's international ...
ActiveWins
PR and Marketing
ActiveWin has ripped up the rulebook on the traditional agency prototype. Our model is based on performance - as you ...
Global Gaming Awards
Industry Awards
The Global Gaming Awards London recognise the most innovative companies and individuals of the gaming world. The Awards are powered ...
BetConstruct
Systems and Software
BetConstruct is a global award-winning technology and services provider for online and land-based gaming industry. BetConstruct's innovative and proven offerings ...
NSoft
Systems and Software
NSoft is an award - winning internationally recognized software solutions provider for betting industry. The company has more than 200 employees ...
Zimpler
Payments
Zimpler provides a complete In and Out payment solution for online services. That means we take care of identifying the ...
BBIN
Systems and Software
The Leading iGaming Software Supplier in Asia