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Sweden – Evolution expects an ‘even more hectic Q4’ following significant Q3 gains

By - 23 October 2020

Evolution has posted a Q3 profit of €79.4m and an EBITDA increase of 87 per cent to €90.7m, corresponding to a margin of 64.8 per cent. Operating revenues increased by 48 per cent to €140m, with earnings per share amounting to €0.44.

The Q3 trading update sees January-September operating revenues at €383.5m, profit €204m, EBITDA €235.9m (corresponding to a margin of 61.5 per cent), and earnings per share of €1.12.

CEO Martin Carlesund said: “We have a hectic Q3 behind us and now we look forward to an even more hectic Q4. We will continue to work relentlessly on all fronts to continue to be better every single day.”

In recent months, Evolution has continued its expansion in the US with new customers and and the opening of a studio in Pennsylvania,. The company experienced 150 per cent growth in Asia where revenue topped €34.8m whilst revenue was down 4.9 per cent and 25.8 per cent respectively in the Nordics and UK.

Carlesund commented: “The past quarter has also been a period of exceptionally high activity operationally within Evolution and after the end of the quarter we are live with our first tables in both Pennsylvania, USA and Kaunas, Lithuania. We are still dealing with the limitations imposed by Covid but we are slowly coming back towards pre-Covid levels in number of tables.

“Our new game show style game – Crazy Time – was launched globally on July 1 and has been a great success. Players enjoy the groundbreaking game format and possibility of big wins. It is our most successful game launch to date. Instant Roulette was also launched during the quarter and coming up in Q4 is the launch of Craps. We continue to build our portfolio of unique innovative games both within traditional table games as well as game shows.

“Germany is on its way to be the next regulated market in Europe. Licenses for Online Casino, which includes Live Casino, and Online Slots, are planned to be issued from July 2021. Until then a transition will take place where some operators will not offer Live Casino. Revenue related to German players make up 5-10% of our current total revenues. While we expect a negative effect on our German revenue during the transition the effect on the Evolution group as a whole is limited. Long-term we view the move towards regulation in Germany as positive for Evolution.

“We continue to stay focused on further strengthening our North American footprint and it makes me proud to say that we now are live in Pennsylvania. Also important for the North America expansion is that we, during the third quarter, have signed several new customers for the US market and more are to come. Regardless of the timing for regulation in additional states we know that Evolution is well positioned and that the US market is a long-term project with very high potential.

“We experience high demand for our games all over the world and thus we continue to invest in additional studio capacity to meet the total demand. During this week we also launched the new medium sized Lithuanian studio. It has been our fastest and most efficient build so far. Together with the latest expansion in Tbilisi, the new build in Pennsylvania, expansion in Malta, expansion in New Jersey and the coming build in Michigan we look forward to a very hectic expansion in the coming period.

“During the period we have also updated our corporate brand. The new branding better reflects the diversity of our operations. In addition to our gaming offerings, we are also active within areas such as software development, technology innovation and state-of-the art broadcast studio design.

“With increased studio capacity together with a continuous development of the very best products and services, we are well positioned to increase our market leadership within Live Casino going forward. During the fourth quarter we look forward to close the deal with NetEnt. We see a fantastic potential in combining the two companies and continuing to deliver the best playing experiences for players across the globe.”

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