NetEnt and Evolution hail US growth in Q3 revenue upticks
NetEnt reveals 313% US market growth while Evolution looks to expand its presence in the States
NetEnt’s US market GGR increased by 313% year-on-year in Q3 accounting for 10% of total group GGR.
The supplier concluded several B2B supply deals in the quarter with operators including DraftKings, William Hill, Tipico, Wind Creek, BetMGM and The Cordish Companies.
Its live casino operations enjoyed a stellar Q3 with GGR up 109%. The supplier attributed this to a high pace of growth with existing customers but highlighted a slowdown in new live casino sales.
“During the quarter we continued to invest in our strategic growth areas of the USA, Red Tiger and live casino, while driving cost and revenue synergies from the ongoing integration between NetEnt and Red Tiger,” NetEnt CEO Therese Hillman said.
“The return of sports betting and the general easing of lockdowns in key markets resulted in a normalisation of revenue growth to pre Covid-19 levels. Our continued focus on costs started to have a notably positive effect on profitability in the quarter.
“Given our new lower cost base, the operating leverage of our business and our strong product pipeline, we expect continued strong growth in earnings and cashflow for the rest of the year and beyond,” she added.
The supplier hailed several Q3 projects as potentially driving financial growth in Q4, including the launch of Red Tiger games in Pennsylvania under NetEnt’s license in November.
Live casino was this week approved to operate in Pennsylvania, over a year since the state launched igaming.
Regulated markets accounted for 52% of NetEnt’s total GGR during Q3, with 90% of GGR coming from slots games, compared to just 10% from table games.
The percentage of revenue generated from the US market increased by 7% during Q3, with 8% declines in revenue generated by NetEnt’s core Nordic and European markets. The percentage of revenue generated from the UK and rest of the world segments rose by single digits during the same period, by 7% and 2% respectively.
Live casino provider Evolution, which is primed to seal its imminent takeover of NetEnt, recorded a 100% profit increase year-on-year for Q3 and is eyeing up more US-facing partners.
Martin Carlesund, Evolution CEO, said: “We continue to stay focused on further strengthening our North American footprint and it makes me proud to say that we now are live in Pennsylvania. Also important for the North America expansion is that we, during the third quarter, have signed several new customers for the US market and more are to come.
“Regardless of the timing for regulation in additional states we know that Evolution is well positioned and that the US market is a long-term project with very high potential,” he added.
Evolution’s acquisition of NetEnt will be finalized in in Q4.