Evolution Gaming reports strong Q1
The most recent earnings release from Evolution Gaming Group AB announced in December 2017 revealed that the business experienced a sizeable tailwind, leading to a high double-digit earnings growth of 95.74%
Revenues amounted to EUR 51.6 million (39.7) in the first quarter, corresponding to an increase of 30% compared with the corresponding period in 2017. The positive revenue development mainly derives from increased commission income from existing customers and, to a certain extent, from new customers.
Demand for Live Casino games was generally high over the quarter and the number of bet spots from end users amounted to 3.1 billion (2.0). Revenues from dedicated tables and environments also contributed to the increase as a result of additional customers launching or extending their customised Live Casino environments.
Operating profit amounted to EUR 17.8 million (14.0), corresponding to an increase of 28 percent. The operating margin was 34.6 percent (35.2). The EBITDA margin was 42.6 percent (42.9).
Net financial items only had a marginal impact on profits and related to the interest expense on loans for the studio property in Riga. The Group’s effective tax rate for the quarter amounted to 7.2 percent (8.1). The tax rate is influenced by the countries in which earnings are generated, which may vary between reported periods. Profit for the period amounted to EUR 16.5 million (12.7). Earnings per share before dilution were EUR 0.46 (0.35).
Martin Carlesund CEO said: Overall, the first quarter of 2018 has been characterised by growth and profitability in line with our expectations, considering the ongoing investments in both new studios and games. We noted a clearly stronger performance at the end of the period, with good growth and earnings, compared with the beginning of the period. Revenues in the quarter amounted to EUR 51.6 million, corresponding to a 30 percent increase compared with the first quarter of 2017. EBITDA amounted to EUR 22.0 million, with a margin of 43 percent. For the full-year, we expect profitability to be in line with the level achieved in 2017, with some fluctuation, both up and down, from quarter to quarter.
During the quarter, we have continued our efforts in product innovation and providing an unparalleled end user experience, in combination with cost-efficient operational excellence, in order to further increase our lead over our competitors.
Among other activities, we have launched Lightning Roulette and RNG Roulette. During its beta test period, Lightning Roulette has been widely appreciated by end users, and we have good expectations for its development as it is launched by an increasing number of operators during the year. In addition, we have started to roll out the RNG product, for which we also have high expectations for the long-term, despite the niche comprising a smaller share of the market.