Evolution reports interim report for January-September

The company reported its financial results for the third quarter of 2018, as well as the ones for the first nine months of the year.

UK.- Evolution Gaming released on Wednesday the Interim Report for January-September 2018, which shows that operating revenues increased by 37% to €175.2 million. The company also reported its financial results for the third quarter of the year.

During the first nine months of the year, Evolution reported an increase if 31% in EBITDA to €76.1 million, corresponding to a margin of 43.4%. Profit for the period amounted to €57.9 million, and earnings per share increased to €1.61.

Moreover, Evolution reported that during the third quarter of the year operating revenues increased by 41% to €64.3 million. EBITDA rose 28% to €28 million, corresponding to a margin of 45.5%, while profit for the three month period amounted to €21.2 million.

Martin Carlesund, CEO of Evolution Gaming, said: “We had approximately 500 tables live at the end of the quarter and we expect continued high expansion going forward. We further expect the margin to improve somewhat in the fourth quarter, while the full year number will be in the lower end of our earlier expectations.

“The main milestone of the quarter was without doubt the launch of our state-of-the-art studio in Atlantic City, New Jersey; our tenth studio globally. Already from start, the studio serves several strong brands in the market with a broad portfolio of games and services. The response has been positive throughout, and the development of the offering has exceeded our expectations during the initial phase, which provides confidence for the future. However, the US market remains a long-term project, where New Jersey marks the start of a longer journey. The timetable for regulation in additional states is hard to predict; according to reports, Pennsylvania is next during 2019. Regardless of the timing, Evolution is now very well positioned to grasp the opportunities that will open up.

“For our newly-opened studio in Georgia, we continue to see positive development with fast growth and a good pace in recruitment. Just as in New Jersey, we are only in the starting blocks and a lot remains to be accomplished. All in all, we can conclude that we have a year of high investment pace behind us, manifested by the said studios as well as our new studio in Canada. When we look upon 2019, we turn our focus to Malta where we evaluate the possibilities for further expansion, potentially via a new studio. All our international teams are located in Malta, and we see that demand for native-language services is increasing as more markets become regulated. In absolute numbers, the investment levels in 2019 will remain approximately on par with this year.”

The CEO said that looking at their markets in the quarter, they noted that the Nordics and Rest of Europe continue to grow at the same pace as before. At the same time, the UK has developed slower as a consequence of operators still being in the process of adapting themselves to the latest regulatory requirements, he said, and added that the Rest of World continues to exhibit high growth, and that they believe it is very positive that Evolution’s products appeal to players across the globe.

“On the product side during the quarter, we have prepared for two new launches that will take place before year-end; a revised RNG suite and Infinite Blackjack, which is a Blackjack game with an unlimited number of players,” he revealed.

“With little more than 2 months of 2018 remaining, we can soon look back at a year that in many ways will be historic for Evolution; not least thanks to our expansion outside Europe. This year, we have also passed the 5,000-employee mark in the group, which is a great achievement. To find the right talents requires time and resources, and I am very proud of all the efforts that are being made in this area.

“With all the above being said, Evolution continues on its course to strengthen its leadership in the market by providing the very best products and services that one may find. I, together with all our employees, look forward to our continued progress with confidence,” he concluded.