NetEnt Fully Integrates Red Tiger Subsidiary
Online and mobile casino games and content supplier, Net Ent acquired Red Tiger Gaming in September 2019. In a press release, the company has just announced that they will realize cost savings and synergies with the full integration of Red Tiger into the main business. The move is likely to lead to around 120 job losses in Malta and Stockholm.
The purchase of Red Tiger has been a successful move, with better than expected results. NetEnt has identified a potential SEK150 million in savings through the integration of operations and a group restructuring process. It's in line with NetEnt's aim to increase competitiveness and improve value within the business.
Restructuring costs are expected to be in the region of SEK25 million, and while this will negatively affect operating profit for Q1 2020, it won't have an impact on cash flow. It will, however, increase company debt to around 100 MSEK. NetEnt took the opportunity to report that they expect revenue for Q1 2020 to be in line with forecasts at SEK490-500 miilion, and that business has not been affected by the Covid-19 outbreak.
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 online casino”,
Therese Hillman, Group CEO of NetEnt.
Source - Press Release - NetEnt integrates Red Tiger to realize further synergies www.netent.com/news 24th March 2020
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