Evolution Revenue Increases

Q3 2022 interime report: Evolution Revenue Increases by 37% compared to the same period in 2021. Operating profits were EUR 378.5 million! (Image from Public Domain Pictures at Pixabay)

Evolution, the iGaming industry’s number one live casino supplier, has recently released its interim report for Q3 of 2022 and it makes for interesting reading. The company already posted increased operating profits of 36.2% of €670 million in its H1 report in July and that progress has continued into Q3 as the firm has revealed it has experienced operating revenues that are up 37.1% compared to the same period in 2021. That is an increase of just over €100 million, which, as you know, is not a number to be sniffed at.

This excellent performance is based on introducing new games, launching new studios in the U.S. (and Europe) and the key employees going the extra mile to help the company perform. All of these factors have contributed to Evolution’s increased demand across the board. Still, the most important (at the moment) is which U.S. state will pass legislation to allow iGaming  to increase its expansion.

The effect of these different factors has determined very impressive numbers. The 3rd quarter was very strong and revenues increased by 37% to 378.5 million Euros. A margin of 69% was achieved by a 35% rise in EBITDA to €261 million. A good EBITA margin is generally considered good if it is over 15%, which is great news for Evolution as they will have more cash on hand. It attracts investors and helps determine the valuation of a company. The company previously announced an earnings guidance of 69% to 71% for the year and they see the lower end of guidance for the year… a slight slide as margins were a bit higher in the 1st 2 quarters of the year.

Martin Carlesund, Evolution’s CEO commented “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.“

Evolution Continues to Innovate and Grow

Of course, these numbers are encouraging  but Evolution is also battling increased inflation, energy prices, transportation costs, salary increases, an increase of staff in all departments (30% year on year) and other competitors in the market.

Profit and operating margins have remained flat at 56.6% and 61.2% respectively. These percentages reflect that as the company grows, the operating expenses will also continue to grow, but hopefully not as much as the profit margins. Europe continues to be the biggest and most mature market for Evolution. It has maintained a consistent 12% growth year on year, while the UK has shrunk to its smallest market with only 5.5% of revenues in the 3rd quarter. Latin America is now the main driver for growth with 62% year on year with North America a close 57%.

Evolution Q3 2022 Interim Report Highlights

  • Operating revenues increased by 37.1% to EUR 378.5 million
  • EBITDA increased by 35.3% to EUR 261.0 million
  • Profit for the period was EUR 221.3 million
  • Earnings per share were EUR 1.04

Evo’s balance sheet is also very strong and is in a great financial position. They are currently debt free and their cash position is 318 million Euros and looks very good in the current global environment. We can expect Evolution to continue to provide new innovative games such as the recently released Football Dice Studio, invest in new studios, and accelerate game rollouts and staff expansion to accommodate their bold and equitable goals going forward.

The company also continues to expand via the acquisition of other iGaming brands. Adding to a list that already includes Ezugi, NetEnt, Red Tiger Gaming, and Big Time Gaming, Evolution recently acquired NoLimit City, an established slot development company, for €340 million.

Aside from ensuring it has brand’s delivering innovative content in other iGaming verticals, Evolution has still continued to do what it does best, and that is to create fabulous new live casino games. This year alone, the firm has so far released 10 new titles. Among those is an XXXtreme variation of its award-winning Lighting Roulette live dealer game, a crossover Monopoly Big Baller title that combines Monopoly Live and Mega Ball, and a live slot game called Crazy Coin Flip.

New Evolution Live Games Launched in 2022

  • Bac Bo
  • Peek Baccarat
  • Super Andar Bahar
  • XXXtreme Lightning Roulette
  • Crazy Coin Flip
  • Teen Patti Live
  • Gold Bar Roulette
  • Monopoly Big Baller
  • Free Bets Blackjack (7-Seat variant)
  • Football Dice Studio

Check out our Evolution live casinos page to learn more about the reasons why this brand is able to post continued profits. The company leads the live casino vertical, owns numerous slot and live dealer brands, and continues to release fantastic new live casino games.

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