Evolution revenues up 45% in Q1, with an increased demand for its products

Evolution Gaming released Thursday its Interim Report for the first quarter of 2020. Operating revenues increased by 45% to EUR 115.1 million, and EBITDA was up by 79% to EUR 64.1 million, corresponding to a margin of 55.7%. Profit for the period saw a 90% increase amounting to EUR 54.2 million, and earnings per share before dilution were EUR 0.30.

Evolution Group CEO Martin Carlesund commented: “The spread of COVID-19 has put the world in an exceptional and challenging situation which has also meant operational trials for Evolution. So far, we have handled the situation in a good way, and financially, Evolution has started 2020 very strongly in terms of both growth and profitability.”

He said Evolution’s main priorities in dealing with the COVID-19 situation are to minimize the risk of spreading the virus and to create a safe workplace for its employees as well as to maintain the operation for its operators. 

“We continue to comply with all the requirements from the authorities in the countries we operate in, and in many cases we have taken more far-reaching initiatives. Thanks to the extensive measures that have been implemented in terms of social distancing, changed working processes and routines for our employees, our operations have been able to continue without any large negative effects,” he added.

However, the CEO said that in several of the studios, Evolution operates with fewer tables compared to normal, and its studios in Georgia and Spain have been temporarily closed during limited periods. During these periods, a large share of the traffic has been managed by the company’s other studios. He noted that being a global company with sites across multiple territories has been an important factor during these times. Evolution’s studios in Latvia and Malta are important hubs from which several of its most popular titles are broadcasted, he remarked.    

“We have seen an increased and strong demand for our products all through the first quarter. During the end of the quarter the absence of sporting betting games likely also favoured growth in our products. This circumstance effects also the start of the second quarter and we now see many new players being introduced to the Live segment”, Carlesund said.    

The company continues ongoing investments in both studios and new games. During ICE London earlier this year, 12 new titles were announced, of which two went live during the first quarter; Speed Blackjack and Lightning Baccarat.

On Thursday, 23 April, Evolution is launching Mega Ball – including a First Person version. Mega Ball is the company’s first game in the lottery vertical, according to Carlesund. “During its beta phase, the game has exhibited a high attraction and it will be interesting to follow the games development. In addition, we will extend our First Person portfolio with three more launching in the second quarter. Another two table games will also be launched during the quarter, Power Blackjack and Baccarat Multiplay,” he announced.     

Furthermore, the construction of Evolution’s new studio in Pennsylvania continues, with a postponed timetable due to the COVID-19 situation, but the firm aims to launch it before year-end remains, the CEO said. Michigan has accelerated its casino regulation process and Evolution hopes that the state soon will be the third regulated market in the US. In South Africa, the company has received a National Manufacturer license, which allows it to offer its and the subsidiary Ezugi’s products to all licensed gaming operators in South Africa.