Evolution Gaming Reveals Double-Digit Income Rise in First Quarter of 2019

Evolution Gaming, software development company famed for its expertise in the live casino segment, has publicly revealed financial figures for operating revenue for the first three months of the year, concluding with March 31st.

According to the company statement, the firm has achieved a double-digit growth in both revenue and profit in Q1, primarily owing to existing customers’ higher commission income. The analysis revealed that revenue amounted to $88.4 million, which is a huge leap of 54% from last year’s first quarter.

No Reason to Not be Pleased

Another strongly contributing factor to this revenue jump was the impact of commission from new clients…

…with also a much higher demand for Evolution’s live dealer games being notably prevalent during this time. Higher revenue from tables and live environments also provided their share to the overall success, as did the number of bet spots from end s (5.1 billion in Q1).

Of course, a larger base of customers also means there would have to be more spending…

…therefore expanding operating expenses (personnel costs in ties with the launch of new tables) to EUR 491.000.000. Cost of staff totaled EUR 29 million, which is 9 million more than in last year’s Q1.

You Have to Spend in Order to Make

All these rising expenses did not prevent Evolution from reporting operating profit’s significant increase – up 64% year-on-year to EUR 30.2 million. Even earnings before depreciation, tax and amortization also rose from EUR 22 million to 35.9 million.

Profit from tax figures reached EUR 30.1 million, while profit after tax went up to EUR 28.6 million – a rise from 17.8M and 16.5M respectively.

According to company officials, it is very likely that 2019 will end in “upper ends” of their 44-46% EBITDA full year margin.

All Paying Off

CEO, Martin Carlesund, is extremely content with the achieved results. He said:

“Throughout last year, we expanded studio space and customer environments and the number of tables in line with the increasing demand from our customers, and we can now see how all of this pays off. It is our assessment that Live Casino as a product vertical will continue to take market shares in 2019 and why we consequently will continue to invest based on our customers’ demands in our studios also going forward.”

He also touched upon the subject of a larger number of markets increasing regulation (such as Sweden, US and Canada) and the impact this had on the company’s numbers. He remarked that the product portfolio has been taken to a whole new level through dedication and high energy…

…and that new releases have created a new market for the whole industry, which “makes the gap between ourselves and competitors even wider.”

Looking to Monopolize the Market With…Monopoly!

What Carlesund means by that when he talks about the products that create a new market, is the brand-new Live Casino games suite recently introduced by the brand…

…that also includes a take on the world’s most popular board game, Monopoly! The t project with Monopoly creators, Hasbro, features augmented reality and a 3D bonus round. It is part of the huge suite of new live dealer offerings that were announced at this year’s ICE London event.

Source:

“Evolution posts revenue and profit growth in Q1”, igamingbusiness.com, April 25, 2019.