NetEnt vs Playtech Stocks – Who Is the Winner-The NewsWeek Group
Compare 40 NetEnt Casinos to Get Quick Payouts in 2019
Online gambling is in a lot of ways more convenient than traditional land-based casinos. Software developers that make this type of gaming possible are always improving their technology. Being responsible for the whole industry, key companies appear to be very influential; and making investments in iGaming seems to be a new trend.
The largest software providers are Microgaming, NetEnt, and Playtech. The list of casinos powered by NetEnt or the list of selected Playtech operators shows the diversity of services that use software from the leading companies. Microgaming is the company with the outstanding experience which has been the industry pioneer, delivering quality content since 1994, but it doesn’t trade stocks. While both NetEnt and Playtech, as public companies, do. Let’s explore how solid are their positions and how popular are their shares.
Software providers can’t be evaluated without the analysis of games and partner casinos. There are a lot of fans of both NetEnt and Playtech, which is reflected in forums and in blogs dedicated to gambling.
NetEnt offers a wide variety of games and focused on slots. You may have heard about famous Gonzo’s Quest, Starburst, and South Park. The company tries to create immersive slots with quality graphics and sounds. Also, developers implement innovations like VR.
Playtech constantly gets new awards in a number of areas related to the gambling industry. The company also has a focus on slots and develop partnerships with famous brands like Marvel. Gamblers can enjoy multi-game jackpots with combined prizes. Playtech also has its own Live platform with real croupiers and TV broadcasts.
Financial data of NetEnt and Playtech
The main indicator of the company’s success is its financial performance. Top-rated brands sell shares for hundreds or even thousands of dollars per unit. Since online gambling is a relatively new industry, developers aren’t as widely represented on the stock market, but they are becoming popular quite quickly.
When it comes to trading, NetEnt and Playtech are on similar terms. Netent is a Swedish company and lists shares on the Stockholm Stock Exchange, while Playtech is represented on the London stocks’ market. Let’s check some of the key statistics as for December 2018:
- Local currency (NetEnt / Playtech): SEK / GBX
- Volume: 678 650 units / 2 184 071 units
- Market capitalization:11M / 1.836B
- All-time high: $8.82 / $12.93
- All-time low: $0.24 / $2.74
It’s clear that Playtech has a bigger volume and value.
In the annual report of 2018, NetEnt focuses on the year results and further goals. Overall, the company indicates an 8.9% revenue growth and a 33.7% operating margin. Here are their results divided by quarters:
- Q1: NetEnt launches a product, customized specifically for live casinos. Additionally, the company realized several new slot games.
- Q2: The company hasn’t stopped developing and released a few more slot games, which in combination with those that were seen by the world in the Q1 of 2018, constitute 10 new slot gaming products.
- Q3: NetEnt keeps on extending the boundaries and launches games in the USA, Canada, Norway, and other countries.
- Q4: Together with the launching of different games, new agreements and contracts have been signed and seen the world during this period of time.
During every period, the provider has launched several slot games, including quite popular titles like BerryBurst MAX. The general growth and improvement of efficiency and profitability were marked as the main goals for 2018. It seems that the company is pretty successful on its way to reach its goals.
According to Playtech’s report, its total revenue increased by 54% and EBITDA increased by 7%. Other numbers (adjusted net profit, total dividends) increased during 2018 as well.
Here are some of the key indicators of the company’s growth:
- May: A meeting, held in the spring of 2018 has addressed the subject of Paytech’s authority to repurchase shares. The companies right to such financial action was approved.
- June: This month, Playtech finished the process of purchasing a significant part of Snaitech. A little bit later if became fully owned by Playtech.
- October: By this time the company raised enough funds to repay the drawn revolving credit facility and cancel the bridge facility used to acquire Snaitech.
- December: The end of 2018 has been accompanied by successful tax regulation regarding Playtech Group’s activity in Israel.
Comparing the results, it seems that the British company was better in terms of revenue but not as active in launching new gaming products. Playtech has signed and renewed a lot of contracts, but NetEnt has launched its casinos in a number of states.
Is there a winner?
Numbers clearly show that Playtech is the leader at the moment. It has a higher price of stocks and has been showing a better performance last year. At the same time, NetEnt is rapidly expanding, entering new markets in Spain, Canada, and Mexico. Both brands are very influential and have a growing customer base. With innovations being introduced and more games gaining popularity, these software providers have all the chances to boost their shares on the stock market.