Interactive
Sweden – Evolution continues its growth into Q1 of 2019
By Phil - 19 July 2019
Evolution’s strong development has continued between January and June 2019 with continued high growth and further improved margin in the second quarter.
Operating revenues increased by 45 per cent to €85.7m, EBITDA increased by 63 per cent to €42.7m (26.2) whilst profit for the period amounted to €34.5m.
CEO Martin Carlesund said: “2019 is a year of product and innovation, and during the period, we have launched all this year’s new games. The response has been instant, and we are overwhelmed by the positive reception among both players and operators. Our aim in the development has been to create games that attract new player types and to expand the Live vertical into new segments, and so far, we are very happy with the outcome. All games, from the new titles within the Game Show category to the dice games, find their audiences and we see a significant increase in the number of players. The new games are not as staff intensive as the traditional table games, which in combination with a generally high efficiency in all studios contribute to the margin development.
The extended portfolio also contributed to the revenue growth, but it is important to note that most of Evolution’s revenues continue to derive from its core games and that the new games are still in an early stage post-launch. However, all new titles contribute to a generally higher interest in Live Casino and Mr. Carlesund believes that the Live vertical will continue to grow its share of the total online casino market.
“When the Live vertical grows, we take market shares – as do our customers with access to the new games,” he explained. “The Nordics are growing, however at a somewhat slower pace as the Swedish market now is normalising following the intense start to the year as a result of the new gaming legislation. The UK continues to stabilise and is growing compared to the corresponding quarter last year. Both Rest of Europe and Rest of World also exhibit favourable growth.”
During the quarter, Evolution transferred the first tables to the new Malta studio, while also expanding the studio in Georgia. It plans to double its capacity in New Jersey.
“We will also strengthen our presence in the US further and have started the planning for the construction of a studio in Pennsylvania,” Mr. Carlesund added. “All in all, investments for the 2019 full year in absolute numbers will be somewhat higher than in 2018. It is imperative for us to meet the demand for Live, to continue to enable innovation within the company and to constantly increase the gap to competition. Connected to this, it is important to remember that in a case where we must prioritise, we will always put growth before margins.”
“During the first half of the year, we have laid the foundation for Evolution’s continued leadership in Live Casino. A proof of this was when we received the award as Live Casino Supplier of the Year for the tenth consecutive year at the EGR B2B Awards in June. The award goes straight to all our employees. I am immensely proud of everyone’s achievements so far this year, and the innovation power they possess creates confidence for the future.”
