Posted in Industry November 26, 2018
Strong Financial Reports for Q3 From Betting Giants
The online gambling industry is set to finish the fiscal year on a positive note, thanks to the strong performance of top gambling firms in Q3. According to the released revenues and financial returns, industry leaders NetEnt, Betsson, and Evolution Gaming have not only met but also exceeded industry expectations. While NetEnt faced slower revenue growth, Betsson and Evolution Gaming have outperformed the gambling sector in Q3, setting the stage for a more promising Q4.
Game Launches Drive NetEnt’s Revenue Growth by 11%
During the third quarter, NetEnt achieved an 11% revenue growth, amounting to SEK449.3m (€43.2m). This marked a significant improvement for the Swedish company and was likely fueled by innovative game releases, collaborations, and internal developments. The revenue boost was attributed, in part, to the release of new gaming titles like Swipe & Roll, Mirror Mirror, Berry Burst, and Double Stacks. Furthermore, the company saw increased revenue from its partnerships with high-profile clients such as Hard Rock in New Jersey, Norsk Tipping, and the British Lottery Corporation. This period also saw the appointment of Lars Johansson as the acting CFO for NetEnt.
NetEnt’s revenue breakdown reveals that the majority of its earnings (91.6%) came from its portfolio of slot games, with table games contributing 8%. In terms of platforms, mobile gaming accounted for 61% of the revenue, a significant improvement from the 51.9% recorded in the same quarter last year.
Continued Profitability for Evolution Gaming in Q3
Evolution Gaming, a Stockholm-based live dealer games supplier, sustained its profitable streak with a 41% increase in revenue, totaling €64.3m, for the third quarter of the year. The company reported a 28% increase in EBITDA and achieved a 43.5% margin. Furthermore, its profit for this period amounted to €21.2 million, demonstrating profitability for its stakeholders. The increase in revenue is mainly attributed to commissions and income from existing customers and clients who launched their dedicated cables.
With these impressive revenues, Evolution Gaming has expansion plans in mind. CEO Martin Carlesund revealed the company’s intention to establish another studio in Malta to support its growing business.
Betsson Reports 21% Revenue Increase and Aims for Performance Enhancement
Betsson, a Stockholm-listed gaming company, also delivered decent results in the last quarter. The company’s published report shows a third-quarter revenue of SEK1,426.8m (approximately €137.8m). All regions contributed to the company’s growth, with Western Europe and the Nordic region being the primary drivers in Q3 revenue. Additionally, the sportsbook revenue increased by 23%, with a margin of 7.4%, significantly higher than the previous year. The casino segment also experienced a 22% increase.
This promising performance in Q3 builds upon Betsson’s positive first half of the year. The company expects to continue recording favorable revenues in the final quarter, based on its recent filings.
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