Evolution’s revenue reached €140M in Q3 2020, up 48% year-on-year, while NetEnt’s revenue hit €50.8M, up 18%. 

In summer, live casino supplier Evolution (formerly Evolution Gaming) announced a bid to acquire live casino and slot supplier NetEnt, in a deal worth SEK 19.6 billion.

During the third quarter of 2020, Evolution saw EBITDA rocket 87% to €90.7M, equating to a margin of 64.8%, while profit doubled compared to 2019, to €79.4M. Operating revenue also jumped by 48% to €383.5M.

Though he acknowledged the COVID-19 crisis had led to some complications, reflecting on the period Evolution CEO, Martin Carlesund, said the quarter had seen “exceptionally high activity”, and looked forward to the upcoming merger with NetEnt, saying:

“We see a fantastic potential in combining the two companies and continuing to deliver the best playing experiences for players across the globe. We will continue to work relentlessly on all fronts to continue to better every single day.”

While NetEnt’s quarterly revenue grew by 18% year-on-year during the third quarter, its after tax earnings more than doubled, surging from SEK 76M to SEK167M. EBITDA hit SEK 310M, up from SEK196M in the same period last year, with a corresponding margin of 59%. 

For the first nine months of 2020, NetEnt’s revenue grew 33% to SEK 1.6B, with EBITDA leaping 41% to SEK 838M. 

Notably, while the quarter saw the company continue to integrate Red Tiger, and release a total of 16 new games between the brands, significant contracts were also announced in the United States with operators including DraftKings and William Hill. 

GGR in the US market exploded, growing 313% year-on-year, with the country contributing a sizable 10% to the group’s GGR for the quarter. 

Commenting on the performance CEO of NetEnt, Therese Hillman, said:

“During the quarter we continued to invest in our strategic growth areas USA, Red Tiger and Live Casino. 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 cash flow for the rest of the year and beyond.”

AYO.NEWS says:

With both companies seeing significant growth, thanks in no small part to their focus on live casino and slots, which have both boomed during the COVID-19 crisis, and investing in the nascent US markets, it seems certain that a genuine gaming superpower will result from the their upcoming merger. 

‘AYO.NEWS says’ features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited or its affiliates or associates. 

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