Evolution has reported its financial results for the third quarter of the year. For the period ended September 30, the B2B online casino services provider posted total revenues amounting to EUR 378.5 million ($379.1 million), an increase of 37.1% compared to last year’s Q3. The company further delivered EBITDA of EUR 261.0 million ($261.4 million), up by 35.3%, corresponding to a margin of 69%.
“We delivered strong revenue growth in the third quarter of 2022,” commented CEO Martin Carlesund. Additionally, profit for the period amounted to EUR 221.3 million ($221.8 million), up from EUR 157.4 million in the comparable quarter last year; while earnings per share reached EUR 1.04, up from Q3 2021’s EUR 0.73.
“Live Casino reported a continued rapid growth of 45% in the quarter. We continue to see very strong global demand for our new as well as existing products and we are increasing market shares and our distance to competitors,” further noted Carlesund. “The roll-out of the full product suite to all regulated markets continues.”
Total revenue from RNG (random number generator) games increased by 11% compared to last year, including the acquisition of developer of online slot games Nolimit City, which was completed in August. However, “this is not yet satisfactory,” said the chief executive. “We have delivered too few slot games during the past period, however, we remain fully committed to the target of double-digit growth.” The company is now focused on accelerating rollouts.
Speaking of the Nolimit City acquisition, Carlesund said operations have started off “strongly,” but noted that the company’s double-digit growth target for RNG has been set excluding the new business. The CEO said the transaction, which was financed through cash flow, highlights Evolution’s financial strength. “Our very strong balance sheet, with no debt, is in the current unstable macro environment an even stronger asset,” he pointed out.
“End-user entertainment, satisfaction and preference are always the most important factors for any game we create,” affirmed the CEO. “We always go the extra mile to create something exceptional to the end-users and I am very satisfied with the product rollout of Live 2022.” Evolution’s game shows have now become some of the company’s most popular products, and in the quarter, the brand introduced a bingo-style live game show called MONOPOLY Big Baller.
Also debuting in the quarter was Crazy Coin Flip, a game combining both Live and RNG game mechanics, and a new addition to the live Roulette family called Gold Bar Roulette, “in which a spectacular studio and some fresh game features take Roulette to a new exiting level.” As it expands its portfolio in North America, the company launched Live Craps in Pennsylvania in Q3, and in New Jersey after the end of the period, with more states to follow.
Gold Bar Roulette, one of the quarter's additions
“Our offering continues to find an audience across the globe and OSS is just in the beginning of showing traction,” the company said. All regions reported growth in the quarter. In North America, the brand continued to expand studio capacity, while in the European markets it reported stronger growth in the quarter than earlier this year. “We continue to experience an increasing end-user preference for our products in Asia, driving a continued strong growth,” noted Carlesund. “The Other region, which includes Latin America and Africa, shows very good growth once again and we continue to see good potential in both markets over time.”
Online Casino continued to grow worldwide during the period, and the path in a long-term perspective is “very strong.” With that said, increased interest rates, increased inflation, signs of a weakening economy in some markets, as well as an uncertain geopolitical situation, are all factors that the company said could affect its business. “It is difficult to separate the effect of these circumstances to conclude what the implications may have been in the quarter or what they will be in the next,” the company stated.
Evolution admitted it seeing higher costs in supplies, electricity, transport and also upward pressures on salaries. However, guidance at the beginning of this year was an EBITDA margin in the 69-71% range for the full year, and so far for the nine-month period, the margin is at 69.5 %. “I am satisfied with our delivery under the current circumstances,” concluded the CEO. “We make no change to our previously guided range of EBITDA-margin of 69-71% for the full year.”
See Evolution’s full Q3 2022 results here.
Original article: https://www.yogonet.com/international/news/2022/10/27/64801-evolution-posts-37–revenue-jump-in-q3-driven-by-increased-live-casino-demand–growth-in-all-regions
