NetEnt and Evolution Gaming Post Strong Q2 Results
NetEnt and Evolution Gaming have posted strong Q2 results. The lack of sporting events during the pandemic shifted gambling dollars to online casinos.
NetEnt and Evolution Gaming have both posted good financial results for the second quarter of 2020. Both companies saw strong demand during the coronavirus pandemic. NetEnt's revenue for first half of the year rose by 30.2% year-on-year, while profit fell 29%. Evolution's total revenue increased by 48% and profits were up 98%.
NetEnt's costs rose by 52.3% in the second quarter. The company was integrating its recently acquired casino game developer Red Tiger Gaming into the wider business. About 10% of the gross gaming revenue for NetEnt came from the US, while the UK is still the company’s biggest market with 21% GGR.
Evolution Gaming's Q2 operating revenue rose 50% year-on-year to €128.3m ($146.6m). The company believes the lack of sports betting has helped generate these results. Last month, Evolution made a $2.1bn acquisition bid for NetEnt. CEO Martin Carlesund noted that this acquisition would place Evolution in a very strong market position.
NetEnt has seen significant GGR growth in Pennsylvania and New Jersey. It is planning to offer games in West Virginia and Michigan as soon as the markets allow. Evolution signed a deal with Golden Nugget to add its games to the operator's online casino in New York.