Revenue and profit down at Net Gaming in ‘challenging’ 2019
Published 21st February 2020
Revenue for the 12 months through to 31 December 2019 amounted to €14.3m (£12.0m/$15.4m), down 23.1% from €18.6m in the previous year.
Net Gaming said that this decline was primarily due to regulatory effects and an accelerated transition to revenue share, which had a negative impact on revenue.
“2019 has been incredibly challenging and characterised by regulatory effects in the European market,” Teilman said. “The major change in the business model to an increased proportion of revenue share has had a negative impact on our revenue in 2019.
“The main purpose of changing the business model is to build a more stable revenue base with a larger share of recurring revenue. We estimate that the increased proportion of revenue share reduced our revenue by €1.1m to €1.5m, which contributed to 25-35% of the revenue decline in 2019.”