NetEnt Introduces Changes to Red Tiger to Boost Efficiency

NetEnt, after acquiring Red Tiger Gaming back in September 2019, has decided to further strengthen competitiveness and increase efficiency by introducing changes in the organization.

The changes include a reduction in the Red Tiger workforce by approximately 120 employees, mainly in Stockholm.

The acquisition opened up significant potential for synergy as it increases the efficiency and economies of scale, exceeding the expectations. In order to speed up the full integration with the NetEnt Group, a restructuring is now being implemented.

Measures Taken

The measures that will take place are a part of the latter company’s strategy to continue improving all aspects of the business and strengthen its position and increase value in the company. The reduction of the workforce and the overall restructuring is estimated to result in annual savings of roughly SEK 150 million on a cash-flow basis.

The restructuring will not come cheap and will amount to approximately SEK 25 million, which will be reported as non-recurring items and will have an impact for the first quarter report for 2020.

As far as the COVID-19 situation goes, NetEnt finds it difficult to predict the outcome, as conditions change rapidly. However, the company’s operations have not yet been negatively affected by the pandemic outbreak.

Representatives from NetEnt, say that they are entering a new phase of the Red Tiger integration, with sellers being included into the shareholders of NetEnt and say that this is an opportunity to unleash the full potential of their shared expertise.

“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 online casino,” said Therese Hillman, Group CEO of NetEnt.

About:

NetEnt is a leading provider of top-notch gaming solutions. The developer provides its services to some of the world’s most successful online casino operators. The company is regulated and licensed by the United Kingdom Gaming Commission. It holds licenses in Alderney, Belgium, Gibraltar, Malta, New Jersey, Romania and Spain.

Their cutting-edge platform and their team of over 1000 professionals are responsible for creating thrilling games. The company handled 44.7 billion gaming transactions in 2018. It has a strong presence in Sweden, Malta, Ukraine, Gibraltar, USA and Poland.

Source:

“NetEnt integrates Red Tiger to realize further synergies”, George Miller, europeangaming.eu, March 24, 2020.