Industry News
NetEnt Releases Interim Report for January–March 2020
Casino content developer NetEnt has released its interim report for January–March 2020.
NetEnt reported a 23.9% year-on-year increase in revenue during the first quarter. Revenue for the three months through to 31 March 2020 totalled SEK518.0m, up from SEK418m in the corresponding period last year.
NetEnt slot games were responsible for 90% of all gaming revenue during Q1, compared to 10% from table games. Meanwhile, the UK was its single biggest market, contributing 19% to total revenue, ahead of the Nordic region on 18%.
Comments by Therese Hillman, Group CEO:
“The pandemic outbreak of covid-19 has put the world in an exceptional situation, leaving nobody unaffected. The health and safety of our employees has the highest priority in the NetEnt Group, while we continue to work hard to secure a good development for the Company both in the shorter and longer term. It is difficult to predict the effects of the covid 19-situation on the economy in general and our sector in particular, but we believe that the underlying trend of digitalization in gaming will continue and offer growth opportunities for NetEnt in the future. So far, the financial performance of our business has not been negatively affected by the outbreak of covid-19.
Revenues for the first quarter of the year amounted to SEK 518 (418) million, supported by a strong finish in March and a weaker Swedish krona. On a proforma basis (including Red Tiger in the previous year’s figures), the Group’s total gaming revenues increased by 12 percent in euro compared to the same period in 2019. Most of the growth came from the US and the UK, while developments in Sweden and Norway continued to be negative. Locally regulated markets accounted for 50 percent of Group gaming revenus in the quarter. The largest locally regulated markets for the Group were UK (19 percent of gaming revenues), Italy (8 percent) and USA (7 percent). Sweden accounted for only 6 percent of gaming revenues, which is significantly lower than before the re-regulation of the Swedish market.
To further strengthen competitiveness and increase efficiency, we implemented organizational changes and initiated a full integration with Red Tiger during the quarter. The changes lead to a reduction in the workforce by approximately 120 employees, mainly in Stockholm, and are expected to result in cost savings of SEK 150 million starting in the second half of 2020. This means that we are increasing our estimate of potential synergies from the acquisition to around SEK 250 million annually, including revenue synergies.
Earnings before interest, tax, depreciation and amortization (EBITDA) amounted to SEK 229 (196) million in the quarter, corresponding to a margin of 44.2 (47.0) procent. Earnings were negatively affected by SEK 26 million of restructuring costs related to the integration with Red Tiger.
Red Tiger keeps performing above our expectations with its award-winning games and the expansion to new markets continues. During the quarter, Red Tiger games were launched with customers on the regulated markets in Italy and Slovakia, and with large operators like Svenska Spel in Sweden and Sky in the UK.
Within Live Casino we continue our efforts to strengthen the product. For instance, we increased the number of tables in our studio on Malta and upgraded the user interface for mobile gaming in the quarter. We have had new record levels in the number of players every month since December and we see increasing interest for the product by operators and players.
A strong product pipeline, new regulated market entries and the Live Casino opportunity for NetEnt – combined with Red Tiger’s expansion – puts us in a good position to continue delivering profitable growth in 2020.”
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Gaming Laboratories International
GLI Promotes Malvina Mikaelian and Reenesh Mahabeer to Senior Directors of Engineering
Gaming Laboratories International (GLI) has promoted Malvina Mikaelian and Reenesh Mahabeer to Senior Directors of Engineering.
Mikaelian has been with GLI for 22 years and is based in the Las Vegas lab. Over her history with the company, she has opened GLI’s South Africa and Las Vegas labs and has led the technical group through the most dynamic advances in gaming technology.
“Malvina brings a proven track record of technical leadership, operational excellence, and cross-functional collaboration. In her new role, she will lead strategic engineering initiatives, strengthen organizational execution, and help drive the next phase of innovation and growth for the global land-based division,” Andrea Bossard, Vice President of Engineering at GLI, said.
Mahabeer is based in GLI’s South Africa lab and has been with the company for just under 20 years, working his way from a Senior Engineer to his current position as Senior Director of Engineering. He has led his team through multiple changes in the South African gaming landscape, in both land-based and iGaming.
“Reenesh is a trusted, exceptional leader driving our global digital initiatives and accelerating innovation in emerging technologies. He combines vast market and technical expertise to deliver global consistency and a world-class experience for our clients, while inspiring peers and empowering his team,” Ginnie Hollis, Vice President of Engineering at GLI, said.
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Andy Hendrickson
IGT Executive Andy Hendrickson Expands Role to Become Chief Product & Technology Officer
IGT announced that Andy Hendrickson has expanded his role to become Chief Product & Technology Officer (CPTO), subject to receipt of all required regulatory approvals.
Hendrickson previously served as IGT’s Chief Technology Officer (CTO) since joining the merged IGT and Everi enterprise in 2025. He is recognized as a transformative technology executive behind industry-disrupting platforms and technologies that blend strategic vision with operational excellence to deliver measurable results at scale.
“I’m very pleased that Andy Hendrickson is expanding his role at IGT to become our Chief Product & Technology Officer, leveraging his vision and expertise across technology, products and solutions to help our global customers deliver industry-leading games to players while enhancing their operations. Andy’s leadership as CPTO ensures tighter alignment between our products and processes, and how we leverage world-class talent across our global game studios to create value,” IGT Incoming CEO Hector Fernandez said.
“I’m excited to expand my global technology leadership role to become IGT Chief Product & Technology Officer. I believe IGT has the ingredients to deliver industry-leading products and solutions to our customers, and with the strength of our game studio talent, disciplined content creation and product management, we are well-positioned for growth and innovation,” IGT CPTO Andy Hendrickson said.
Prior to joining IGT, Hendrickson served as CTO of one of IGT’s global competitors. Earlier in his career, Andy served as CTO of Activision Publishing and led technology for some of the world’s most successful console game franchises, including Call of Duty, Crash Bandicoot, and Sekiro. At Walt Disney Animation Studios, Andy led technology for blockbusters like Frozen. Earlier leadership roles include Head of Technology at Pacific Data Images/DreamWorks Animation, where he enabled multi-film annual releases including Shrek 2 and Madagascar, and Senior Technology Officer at Industrial Light & Magic, where he elevated visual effects to new creative frontiers.
A named inventor on multiple U.S. patents, Andy has led innovation spanning remote collaboration, stereoscopic depth rendering, and advanced image processing. His work has garnered film credits on landmark titles including Forrest Gump, The Mask, Men in Black, Frozen and Wreck-It Ralph, alongside numerous blockbuster gaming releases.
He holds a BA in Physics from the University of California, Berkeley, and is an active member of the Academy of Motion Picture Arts and Sciences, SMPTE, and ACM SIGGRAPH.
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Bill Carstanjen
CDI Announces Development Plans for Casino in Salem, New Hampshire
Churchill Downs Incorporated (CDI) has announced new development details related to its charitable gaming facility in Salem, New Hampshire. The company currently operates Casino Salem, located in 19,000 square-feet within The Mall at Rockingham Park. Casino Salem will be redeveloped as Rockingham Grand Casino.
Rockingham Grand Casino will occupy 160,000 square-feet over three floors and will feature 825 historical racing machines, 32 table games, 12 electronic table game seats, a 900-seat live entertainment venue, and several food and beverage concepts, including a center bar and full-service sports bar and restaurant. The Company received approval from the Salem Planning Board for its development plan in December.
Rockingham Grand Casino will be a key tenant of The Mall at Rockingham Park which is the largest shopping mall in New Hampshire. Rockingham Grand Casino is also positioned near Tuscan Village, a prominent mixed-use development offering dining, entertainment, retail shopping, residential areas, hotels, and commercial office space. CDI plans to open Rockingham Grand Casino in mid-2027, with an expected capital investment of $180-200 million.
“We are proud to officially begin our development of Rockingham Grand Casino in partnership with Joe Faro and Sal Lupoli. We look forward to contributing to New Hampshire’s charitable organizations while bringing outstanding entertainment experiences to our guests across the greater Boston region,” said Bill Carstanjen, Chief Executive Officer of CDI.
“We are excited to take the next step alongside our valued partners at Churchill Downs as we begin our journey to bring Rockingham Grand Casino to life. We remain fully committed to strengthening our local economy through the creation of vibrant consumer destinations,” said Joe Faro and Sal Lupoli.
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