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NetEnt and Evolution rise in revenue during Q3 in 2020

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Leading software developers, Evolution and NetEnt, have managed to increase revenue despite COVID-19 restrictions.

Software providers, like all other companies, are bound to do some maintenance and check in with their financial department. Recently it was the annual third quarter revenue check-in which revealed an impressive increase for industry leaders.

Evolution Gaming and NetEnt who are considering a merger, both reached an impressive high with their Q3 Revenue. With most of the year being tainted by the COVID-19 pandemic, lockdown regulations and more it’s surprising to see such tremendous revenues brought in by both companies.

Evolution hits a 48% increase

For the king of live casino games, the third quarter of 2020 brought in €140 million ($165.9 million) in revenue. This is a 48% year on year rise.

According to the report, the EBITDA for the period was €90.7 million which is an overall increase of 87% corresponding to the 64.8% margin. Profit for the period was €79.4 million which is a full 100% increase from 2019.

It should also be stated that for the first three quarters of the year, up to September 2020, all operating revenue increased by 48%. This means Evolution reached a total of €383.5 million and an EBITDA for these three quarters being €235.9 million, which was also up 86% year on year with profit up 98% (€204 million).

Evolution CEO, Martin Carlesund made it clear that the company is still dealing with a number of the COVID restrictions. However, Q3 has been a period of exceptionally high activity for operations as the company saw their tables go live in Pennsylvania, US and Kaunas, Lithuania.

Evolution also launched several new games and invested in extra studio space with some of that space being in Lithuania.

According to Carlesund, the upcoming NetEnt merger holds a lot of potentials to deliver an even better playing experience for many across the globe. The CEO declared that they will continue to work relentlessly on all fronts to improve every single day.

NetEnt on the rise

For NetEnt, Q3 brought an 18% rise in comparison to the same period in 2019. The industry leader raked in SEK521 million ($60 million) which, after-tax, boils down to SEK167 million. Almost twice the SEK67 million reported for last year.

The EBITDA was SEK310 million with a 59% margin which was nearly double the SEK196m from the previous year. The group had a SEK1.6 billion revenue for the first nine months of the year which was a 33% increase from the SEK1.2 billion from 2019. EBITDA was also up 41% from last year standing at SEK838 million.

For the third quarter of the year, NetEnt focused on the integration with Red Tiger Gaming and releasing 16 new games between their two providers. In this time, they also signed contracts with operators in the US markets which includes DraftKings and William Hill.

GGR had a 313% year-on-year increase in the US market according to the released statement, which made up 10% of the group’s total GGR for Q3. Therese Hillman, NetEnt CEO, reveals the focus for the quarte is to invest in their strategic growth in USA, Red Tiger and Live Casino.

She also mentions that thanks to their new lower-cost base, the operating leverage and strong pipeline they expect continued growth in earnings and cash flow for the rest of the year as well as the months to come.

For NetEnt, the ease of lockdown and the return of certain sporting events has helped normalise the revenue growth to pre-COVID-19 levels. Hillman is positive that the revenue outlook for the remainder of the year will continue to grow and remain positive.

Both NetEnt and Evolution Gaming have managed to come out on top, despite the pandemic restrictions. Resulting in highly surprising and positive Q3 revenue outcomes for these industry-leading software providers.

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