In a bid to boost efficiency and strengthen competitiveness, Netent implemented sweeping changes that included integrating Red Tiger. Red Tiger was born in 2014 and has been producing excellent casino games for Europe and Asia. Netent Red Tiger should now perform exceptionally in the casino industry. Visit http://www.topnetent-casinos.net to learn more about Netent casino games.
Can Red Tiger Save Netent?
Netent's acquisition of Red Tiger was sure to send shock waves across the casino gaming industry. red Tiger comes in as a complete package with ready staff and an enviable profile in the casino world. But is it worth the trouble? Considering that the acquisition cost Netent £223 million, you would wonder if you still have to visit clubcaramba .
Granted, the combined force of Netent and Red Tiger will be a force to reckon with in the near future, but the ramifications may be far-reaching. Already, Netent will have to ax many employees rendered redundant by the coming of Red Tiger. Also, raising such a huge amount may have serious effects on the company's financial well-being.
- Acquiring Red Tiger cost Netent £223 million.
- Netent Red Tiger ramifications include laying off of many employees.
- It still remains to be seen if the integration would bear fruit.
Is Netent Red Tiger a Worthy investment?
Netent will fork out a sizeable chunk of its capital occasioning a remarkable dent on its finances. But with the stiff competition from other casino software developers such as Evolution Gaming and Microgaming, you may wonder if Netent Red Tiger will be able to capture enough market share to recoup the costs and begin to make profits.
As expected, Netent has to process the earn-out for the acquisition and integration of Red Tiger before effecting the payments. But how is Netent ever going to raise such a monstrous sum in the current economic times? Netent is considering a directed issue of new shares and cash payments to offset the earn-out.
Will Netent Hold an Annual General Meeting to Approve Addendum?
Netent will hold an annual general meeting in April 2020 to approve an added addendum to issue slightly more than 6 million shares to Red Tiger. The shares are prices at SEK21.34 per share, which reflects the volume-weighted average price of Netent's B shares for the period running from February to March 2020.
What Will Be the Effect on Cashflow?
Although the early earn-out to Red Tiger increases the financial costs of Netent, it is likely that it will not the company's cashflow. The costs will increase to SEK35 million in the first quarter of the year but the firm's debt is expected to reduce by SEK100 million. This means that Red Tiger integration won't destabilize Netent.
- Netent's price index on Nasdaq Stockholm is SEK21.34.
- An annual general meeting will approve the issue of Netent's B-shares.
Will the COVID-19 Pandemic Affect Netent Red Tiger?
COVID-19 is wreaking havoc on world economies but Netent is hopeful that its revenue won't be affected. The company revealed that its expected revenues for the first quarter of 2020 were still in line with its projections, hitting SEK500 million. This because gamers are operating from the safety of their homes from their internet-enabled devices.
What's in the Future for Netent Red Tiger?
Netent Red Tiger should do well after consolidating the market base as well as the workforce. With the ongoing COVID-19 pandemic that has caused lockdowns everywhere, many people are likely to turn to online casino gaming as a pass time. The future looks bright for the new outfit in town, with a consolidated market.