NetEnt Q2 revenue up 37% as CEO praises "transformational steps"

By Owain Flanders

NetEnt CEO Therese Hillman has described the company’s performance in Q2 as “strong” with the company generating record revenue, earnings and cash flow.

The supplier saw revenue of SEK 573m ($63.2m) for the quarter, a rise of 37% year-on-year. On a proforma basis, including NetEnt-owned supplier Red Tiger’s performance in 2019 figures, revenue increased by 15%.

EBITDA was SEK 299m, an increase of 49% from 2019, while earnings after tax amounted to SEK 88m, a drop of 27%.

Last month, Evolution Gaming offered SEK 19.6bn to acquire NetEnt. Excluding the SEK 13m of transaction costs related to this offer, NetEnt’s EBITDA was SEK 312m.

As a result of its strong performance in Q2, the company generated revenue of SEK 1.09bn for the first half of 2020, a rise of 30% from 2019.

EBITDA was SEK 528m, an increase of 33%, while earnings after tax fell by 29%.

During Q2, NetEnt entered the regulated markets of Switzerland, Croatia and Colombia.

According to NetEnt boss Hillman, revenue in April and May saw a positive effect from COVID-19 lockdowns in the company’s main markets.

Commenting on the results, she said: “Hard work and transformational steps in the past year are now starting to create value.

“We remain fully committed to continue on this path and with growth engines such as USA, Red Tiger and Live Casino, I feel that we are well positioned to continue delivering profitable growth and strong cash flows for the rest of this year and onwards.”

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