Evolution posts revenue increase once again. The firm recorded a 97% surge in operating revenues compared to the same period in 2020. (Image by Mufid Majnun on Unsplash)
Evolution posts revenue increase figures once again after the renowned online casino solutions developer released its Q3 2021 interim report. The firm recorded a 97% surge in operating revenues compared to the same period in 2020.
It posted 322.3 million dollars and also recorded a 113% increase to 225.3 million dollars.
This figure corresponds to a 69.9% margin which exceeds guidance for 2021. In that period, profit amounted to 183.8 million dollars from the 92.7 million dollars earlier posted while earnings per share equally amounted to 0.85 dollars.
Evolution recorded a high demand for live casinos throughout the quarter, generating a growth of 53% year-over-year. In comparison with Pro-forma in the third quarter of 2020, RNG revenue grew by 7.9%. The top provider continued its US market expansion with the opening of a Michigan-based new live casino studio.
According to reports from Evolution, the studio in Michigan is off to a good start. In furtherance, Evolution rolled out RNG games in Connecticut a while after the period ended. It is expected that Live games will follow the offering in Connecticut as the studio will become the fourth Evolution operating in the United States.
Flawless + Seamless End-users Entertainment Strategy Success
In a press release, Martin Carlesund, Evolution Chief Executive Officer, stated that: Q3 2021 had been filled with high activities within the firm. He added that the result posted in the quarter has again proven that the firm’s strategy to focus on entertaining the end-users and delivering flawless and seamless experiences is successful.
In his further remarks, Martin stated that Evolution’s top-line growth is mainly attributed to the strong demand for live casinos worldwide. He further noted that revenue in the live casino segment grew in comparison to 2020 and reached higher figures than before the pandemic. Increased RNG business also impacted top-line growth positively.
Evolution completed the acquisition of BTG (Big Time Gaming), an online gaming developer, in June and consolidated the new firm fully into results for Q3 2021, contributing 12.3 million dollars in revenue. Compared to Q3 2020, BTG stand-alone surged by over 30% in Q3 2021. Evolution also signed an agreement to acquire DigiWheel, an Irish iGaming developer, in an all-cash deal during the past year. Evolution aims to release new games in 2022 using the newly-acquired developer’s technology and blend it into Evolution’s online game shows and live casino games.
Evolution’s Red Tiger and NetEnt brands posted about 3% growth in comparison to 2020. This development is in line with what the firm expected. Martin, however, noted that Evolution’s ambition for these two brands is to deliver even stronger growth in 2022. Martin also reaffirmed his firm’s commitment to remodeling its RNG business. The company has rebuilt NetEnt’s complete technology platform and also re-structured the product roadmap this year. Regarding the update, Martin pointed out that Evolution is releasing OSS (One Stop Shop), its updated integration for casinos. OSS is channeled towards customers to allow operators to reach Evolution’s existing content from a single integration. It also ensures that there will be seamless access to future content from Evolution and that it will go fast all over the globe.
Martin reiterated that OSS is a major step for Evolution, its customers, and all its end users to get more exciting content from Evolution.
Plans to Expand the Game Show Audience
Although these developments are considered a key milestone for Evolution, it has resulted in a side effect for the company. It can only deliver fewer new games throughout the year. Nevertheless, Evolution continues to build its portfolio with wheel games like Crazy Time and Monopoly Live still attracting players. The company is also bent on expanding the game show category audience. Cash or Cash, a new bouncing ball game from Evolution, adds decision-making and strategic qualities in a game show-style game to give players choices and allow t hem to control the outcome of the game.
Cash or Cash, along with Fan Tan, represents a gaming highlight, with the latter being a fresh twist on the delightful traditional Asian bead game. During Q3 2021, Evolution also launched improved the user interface of its traditional Blackjack game via a new zooming feature, which further enhances the overall gaming experience. During the quarter, much of the business focus was centered around establishing new studios and investing. Ongoing projects include new Yerevan and Madrid studios, even as Evolution expects to further invest in studios and expand them at the same level as earlier.
Evolution also issued another revenue update for the Jan-Sept period where operating revenues increased to 897.7 million dollars (100% increase) while EBITDA rose to 614.4 million dollars (124% increase), corresponding to a 68.7% margin.
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