NetEnt is a leading provider of premium gaming solution to the world’s most successful online casino operators. The supplier has been a genuine pioneer in driving the market with stunning games powered by its cutting-edge platform. The values of the developer are grounded in a relentless commitment to excellence. So far, NetEnt has proved to be one of the best performing game providers and therefore making use of its game is a must. Likewise, to additionally strengthen seriousness and increment productivity NetEnt is undertaking changes in the organization and full integration with as of late gained Red Tiger. These changes mean a decrease in the workforce by roughly 120 employees, predominantly in Stockholm. But what will the repercussions for the organization?
NetEnt Steps Up Its Integration Of Red Tiger
NetEnt has recently conveyed its aspiration to integration further with Red Tiger, which was acquired in September of 2019. The acquisition has surpassed desires and offers outstanding potential synergies, expanded effectiveness and economies of scale. In other words, nothing but perfection. A rebuilding is presently being executed to accelerate the full integration within the NetEnt team. This implies that few functions are relocated and that 120 full-time positions are made redundant in Stockholm and Malta. What is more, these measures are in accordance with NetEnt’s strategy to consistently improve all pieces of the business to reinforce seriousness and increase value creation in the organization. The rebuilding is assessed to bring about yearly investment funds of roughly SEK 150 million on a cash-flow basis, starting in the second half of 2020. This implies NetEnt is expanding its increasing estimate of potential synergies from the acquisition to around SEK 250 million every year (from recently declared SEK 150 million every year). Moreover, restructuring costs are required to add up to roughly SEK 25 million, which will be accounted for as non-recurring items negatively influence operating profit for the first quarter of 2020.
Plausible Scenarios For The Future
Currently, NetEnt likewise reports that the earn-out consideration for Red Tiger will be recovered through a coordinated issue of new shares and cash payments. Since this financial liability item was previously reported using the discounted net present value, the early redemption leads to an increase in financial costs of approximately SEK 35 million in the first quarter of 2020. Nevertheless, this amount does not affect the cash flow. Following the rights issue, the company’s net debt will decrease by 100 MSEK. The impacts of COVID-19 are hard to conjecture, and conditions change quickly. Be that as it may, NetEnt’s activities have so far not been adversely influenced by the pandemic flare-up. Revenues for the NetEnt Group have created in accordance with market expectations during the first quarter of 2020 and are relied upon to be in the range of around SEK 490-500 million. Additionally, Therese Hillman, Group CEO of NetEnt shared her opinion on behalf of the integration with Red Tiger. “We are now entering the next phase of the integration with Red Tiger, whose sellers are also becoming shareholders of NetEnt. The integration will unleash the full potential of our shared capabilities, create significant efficiency gains in games development and strengthen our position as the market leader in an online casino”.
NetEnt And Red Tiger- The Finest Collaboration
All in all, NetEnt integrated Red Tiger to realize further synergies. It is undoubtedly the case that the highly-professional team of game developer knows its business and consequently this brave move is expected to make the organization even more profitable. As far as we are concerned, we could not be happier. This is because the developer will have the opportunity to embrace many new opportunities. Doing so we make our casino experience way better as we will be able to make use of brand new games, the world has not ever seen. Until then, you can still take full advantage of NetEnt’s ever-growing portfolio. In order to do so, you should pay a visit to an online casino which works in collaboration with the reputable game supplier. These include brands such as Rabona Casino, Slot V Casino and True Flip Casino. However, rest assured that this list is not conclusive, meaning you can gain access to the brand’s extensive portfolio in many different online operators. However, before doing so, we kindly advise you to play responsibly and we wish you a bit of good luck and amazing winnings.
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