Evolution releases interim report
The company released the interim report for January-September 2017.
US.- Evolution Gaming released today its interim report that studied the operations that took place between January and September 2017. Martin Carlesund, CEO of Evolution, said that the third quarter was driven by a high level of activity among their customers in the summer months.
During the third quarter of 2017 operating revenues increased by 56 percent to EUR 45.7 million, when compared to the 29.2 million reported during the same period in 2016. EBITDA increased by 103 percent to EUR 21.8 million, up from the 10.8 million last year, corresponding to a margin of 47.7 percent. Profit for the period totaled EUR 16.8 million, whilst earnings per share amounted to EUR 0.47.
For the period between January and September 2017 operating revenues increased by 57 percent to EUR 127.7 million, as EBITDA also increased by 83 percent to EUR 58 million, a total margin of 45.5 percent. Moreover, profit for the period amounted to EUR 44.1 million and earnings per share EUR 1.23.
The company said that during the third quarter of the year growth and margin continued among high levels with investments in new studios in Georgia and Canada, as well as a positive development for Dream Catcher, awarded Digital Product of the Year in October.
Martin Carlesund, CEO of Evolution, said: “Once again, I can summarise a strong quarter for Evolution Gaming, driven, among other things, by a high level of activity among our customers in the summer months… We have seen continued high growth in existing studios, as several of our customers are extending their dedicated environments. This expansion intensified during the latter part of the quarter, which meant that the cost increase was somewhat lower than expected for the full period. By the end of the year, we expect to have about 400 tables in operation at all of our studios, making Evolution Gaming Europe’s largest casino by a good margin in terms of the number of tables.”
“During the quarter, a generally high level of growth was noted in all of our products. We are focusing heavily on meeting this growth, which is best expressed by the investments in our upcoming studios in Georgia and Canada. Work is continuing as planned and we expect to open the studio in Canada in early 2018, followed by Georgia during the second quarter. Combined, they entail a significant expansion of Evolution’s delivery capacity – with the new studio in Tbilisi as a primary hub, we will have prepared the company for continued expansion for 2-3 years. At the same time, the studio in Canada marks our first land-based establishment in a market outside Europe.”
Carlesund also said that they’re focusing on product innovation, regulated markets and land-based casinos – three key elements of the growth strategy. Dream Catcher, the latest addition to our game portfolio, continues to gain ground as a popular new game format for a target audience that has not traditionally played Live Casino.
“Lastly, we are proud of our agreement with Bulgaria’s largest regulated operator National Lottery AD, signed shortly after the end of the quarter. The operator will launch a complete Live Casino service later this year. As announced in a press release, the Latvian parliament has decided to introduce, as of next year, a fee for each Live Casino table provided from that country. It is not entirely clear how the decision will be implemented, but it is assessed to not entail any material financial impact for Evolution. We also have good opportunities to focus growth in new tables to our other studios in the future. We currently perceive a favourable market situation, with good opportunities to continue growing. Next year, the FIFA World Cup will take place, and this has historically entailed a high level of activity among our customers. We continue to work according to our ambition to continually increase our lead on competitors and, with two new studios on the cards, I am convinced that we will progress further along that path,” he concluded.
