With last year’s late Q2 move to acquire NetEnt for $2.3 billion completed Dec. 1, Evolution reported Wednesday operating revenues were up 68% YoY in Q4 2020 to EUR 177.7 million ($215.5 million). For full year 2020, operating revenue was up 53% YoY to EUR 561.1 million ($680.4 million).
A total of EUR 17.8 million ($21.6 million) of the revenue came from NetEnt. Evolution chief executive Martin Carlesund commented in the company’s year-end report:
“Through the acquisition of NetEnt, we add a second vertical to our unrivaled live casino offer and two strong and fantastic new brands to our product portfolio. This makes us well placed for our long-term ambition of taking a leading global position in online casino.”
Evolution’s stock ($EVO), which trades on Nasdaq Stockholm, is on the rise since the report. It went from around $110 Tuesday to closing over $122 (SEK 1,023) on Thursday. Just six months ago, the stock price was $72.50.
NetEnt a market leader in PA
The international company made its US debut in New Jersey in 2015, where it houses its US headquarters. Then NetEnt got initial approval from the Pennsylvania Gaming Control Board (PGCB) in March 2019 to operate and went live in July 2019 upon iGaming launch in PA.
Now, most of the PA online casinos carry their titles, of which they have more than 200. Gonzo’s Quest, Starburst and Divine Fortune are some of the most popular.
In addition to their home base in Sweden and their US office, the company has operations in Malta, Gibraltar, Poland, Ukraine, India, and the UK.
NetEnt, Evolution an expanding powerhouse
NetEnt continues to expand its footprint, most recently debuting games at a number of online casinos on Day 1 of Michigan’s iGaming launch. Jeff Millar, Evolution Commercial Director, North America commented:
“America is an absolute priority market for Evolution Group, which is reflected by the scale of NetEnt’s first-day presence in Michigan.”
With NetEnt on board, Evolution is in a unique position to dominate in the online gambling market. A big part of that stems from Evolution’s live dealer games, popular in New Jersey and now PA. Evolution announced it plans to open a third live casino studio in Michigan later this year.
Though the majority of revenue comes from Europe and Asia, the growth potential in the US is immense. According to Millar, the company has much planned for expansion this year:
“We are poised to add more operators in all US markets during 2021 and have a roadmap of high-profile game launches. And, as we’ve once again shown, we’re ready for new markets being switched on and partnering casinos to offer a standout product to their players the minute they go live.
NetEnt continues growth in PA
NetEnt continues to grow market share in the red-hot Pennsylvania online casino market. The company formed some key partnerships in the latter half of 2020. Those included launching games on the Cordish Companies‘ online casino PlayLive! as well as the Wind Creek online casino.
Brian Uran, vice president of marketing for PlayLive!, explained the desire to partner with NetEnt:
“As one of the first suppliers to go-live in Pennsylvania, NetEnt’s portfolio is must-have for any operator looking to compete in the online sector. Partnering with them was a priority for the launch of PlayLive!”
The company also expanded its deal with DraftKings to include PA and neighboring West Virginia, as well as new markets to come.
Brian Kraft, NetEnt vice president commercial, Americas said of the partnership:
“DraftKings’ size and market presence make this launch one of the most significant to date. We’re proud to expand our relationship with such a well-known operator and look forward to continuing the success that we’ve achieved together so far. We are thrilled to have such a renowned operator on board as we enter new jurisdictions.”
PAOC editor Valerie Cross contributed to this article.