Evolution Gaming Plc. Sees Strong Revenues in H1 of 2017 Thanks to Their Mobile Gaming Channels
The Stockholm- listed live casino specialists, Evolution Gaming Plc., has reported a 56 per cent increase in revenue for the second quarter of the year, Q2 of 2017. Revenue for the three months were recorded at EUR €42.3 million. The profitable quarter marked the fifteenth consecutive quarter of growth for the company. This means that Evolution Games has been going from strength to strength for almost four years in a row now.
The strong growth was primarily attributed to increased commission income from existing and new customers. The demand for live casino games has been “generally high” over the three months that started on the 1st of April 2017 and ended on the 30th of June 2017. The number of bet spots from end users had also been reported to have increased by 83 per cent to 2.2 billion in that time.
As expected, the revenue generated from mobile devices continued to grow throughout the quarter. It attributed for more than 50 per cent of the company’s income for the first time in its history during Q2 of 2017.
The Chief Executive of the company, Martin Carlesund, was very pleased to report the financial figures from the fruitful quarter that Evolution Gaming Plc. had had. He mentioned that besides the growth in revenue, the gaming supplier had also seen positive growth in other aspects of the company.
He said, “I am very pleased to be able to sum up an eventful quarter with positive development in several areas.”
He also mentioned the long chain of quarterly growths the company has been observing over the past few years.
He said, “The favourable momentum of the past quarters continued into this period, with a strong and steady growth for all products.”
It was reported that operating expenses for the period were 40 per cent higher than that of a year ago. Operating expenses for Q2 of 2017 was reported at EUR €26.4 million. This was mainly driven by a 39 per cent increase in personnel expenses, which was reported at EUR €17.6 million. The company attributed this increase to the launch of the new tables at their studios. The tables not only increased spending on personnel at the company but also other operating expenses by a total of 40 per cent to EUR €5.4 million.
Despite these increases in cost, the strong revenue growth helped Evolution Gaming Plc. achieve a year over year growth in operating profits of a whopping 92 per cent. This was reported at EUR €15.9 million. Profits for the period were also up by a comparable 92 per cent; it was reported for Q2 of 2017 at EUR €14.6 million.
For the half- year period, H1 of 2017, total revenue was up 58 per cent to EUR €82.0 million. Profits for the six months also saw a sizable growth. It was reported for the period at EUR €27.4 million, a 79 per cent year over year growth.
Carlesund said that the demand for live casino services have generally been on the rise. He also mentioned that Evolution Gaming had seen an increase in demand for live casino products from their clients, who have in turn been pushing the products on to the end users. Thus, this has had a chain effect, which has increased the demand for their products and services overall.
He said, “We are seeing continued live casino initiatives among all of our customers, who are also marketing their offerings towards end users to an increasing extent.”
He also added that they have been busy customising the live casino offerings for each of their clients. While the gist of the service may seem to be the same, a lot of effort goes into making sure that customers get a unique experience when they access the live casino product through different brands.
He said, “Operators’ live offerings are undergoing constant development and we are working hard to optimise their environments to optimally reflect each brand and various player profiles.”
He added that the company will be focusing on their expansions efforts for the remainder of this year.
He said, “For the remainder of the year, we expect an intense period in terms of expansion of new environments.”
Evolution Gaming Plc. has also confirmed that they have received approval to establish their next major studio in the USA. The studios will be set up in Tbilisi, Georgia.
Comparative Fiscal Figures from Q2 an H1 of 2017 and Q2 and H1 of 2016
Comparative data for the fiscal figures from the second quarters of 2016 and 2017 and the first halves of the two years highlight the massive growth that the live casino specialists have experienced in the last 12 months.
Revenues for the Second Quarter of 2017, Q2 of 2017, was reported at EUR €42.3 million, compared to EUR €27.1 million that was reported for the same period in 2016, Q2 of 2016. This marked a year over year growth of EUR €15.2 million or 56.1 per cent. Revenues for the first half of the year, H1 of 2017, were reported at EUR €82.0 million, while those for the year before, H1 of 2016, were reported at EUR €51.9 million. This marked a year over year increase of EUR €30.1 million or 58 per cent.
Personnel Costs, which refer to the money that is spent by the company on paying their employees in return for their services, saw an increase both for the quarter and half year periods. The Personnel costs for Q2 of 2017 was reported at EUR €17.6 million, while that from a year ago, Q2 of 2016, was reported at EUR €12.6 million. This marked a year over year increase of EUR €5 million or 40 per cent. The costs for the first half of the year, H1 of 2017, was reported at EUR €34.0 million, while that of the same period for the year before, H1 of 2016, was reported at EUR €23.6 million. This reflected a year over year increase of EUR €10.4 million or 44.1 per cent.
As with any other asset, there is an estimated lifespan and, therefore, depreciation in value over time. Amortization is used to reflect the reduction in value of an intangible asset over its lifespan. Impairment occurs when an intangible asset is deemed less valuable than is stated on the balance sheet after amortization. Total cost of Depreciation, Amortisation and Impairments for Q2 of 2017 was reported at EUR €3.3 million, while those from the year before, Q2 of 2016, was reported at EUR €2.3 million. This marked a year over year increase of EUR €1.0 million, which also reflected a 43.5 per cent change. The figures for the first half of the year, H1 of 2017, were reported at EUR €6.4 million. That for the year before, H1 of 2016, was reported at EUR €4.3 million. This reflected a year over year increase of EUR €2.1 million or 48.8 per cent.
Operating expenses for the company also increased over the course of the last 12 months. The figures reported for Q2 of 2017 were EUR €5.4 million, while those reported the year before, Q2 of 2016, were EUR €3.9 million. This marked a year over year increase of EUR €1.5 million or 38.5 per cent. The operating expenses for H1 of 2017 were reported at EUR €11.7 million, while those from the year before, H1 of 2016, were reported at EUR €7.4 million. This reflected a year over year increase of EUR €4.3 million or 58.1 per cent.
Evolution Gaming Plc. turned a profit both in the second quarter and first half of the year. The figures reported for Q2 of 2017 were EUR €14.6 million and those for Q2 of 2016 were EUR €7.6 million. This showed a year over year gain of EUR €7.0 million or 92.1 per cent. The profits for H1 of 2017 were reported at EUR €27.4 million compared to H1 of 2016, when profits were reported at EUR €15.3 million. This marked a year over year gain of EUR €12.1 million or 79.1 per cent.
On the 30th of June 2017, the company held cash and cash equivalents of €28.3 million, compared to €14.8 million, which was held a year ago on the 30th of June 2016.
Shares in Evolution Gaming Group AB gained 2.32 per cent to SEK 472.2 million in Stockholm on Thursday, the 20th of July 2017. The company was trading just below their 52-week high of SEK 483.00, which was set on Monday, the 17th of July 2017.
Evolution Gaming Plc.
Evolution gaming is a gambling software specialist that focuses on the live dealer services. The company was founded in 2006 and within their first year they managed to secure deals with major gaming operators such as Gala Coral Group, PartyGaming Plc., William Hill Plc, Blue Square, Gaming VC, Expekt and VC Bet.
A couple of years later, in 2008, the company expanded into the German market, they signed an agreement with online sports- betting, poker and casino company Bet- at- home.com. The popularity of Evolution Gaming started to soar.
In 2009, they opened a number of VIP studios for their high rollers and signed deals with more key operators, like 888 Holding Plc., SportingBet Plc., Ladbrokes Plc., Unibet Ltd., Paddy Power Ltd. and SkyBet of Sky Betting & Gaming.
The following year, Evolution Gaming was given the EGR B2B award for ‘Live Casino Software Supplier of the Year’ and ‘Software Rising Star of the Year.’ The company also expanded their studios to make room for Dedicated Tables for their licensees.
In 2011, SKAT- compliant Live Casino solutions were developed and launched in Denmark’s re- regulated market. Evolution Gaming also became the first online Live Casino provider to be approved by AAMS in Italy. At the time, they decided to relocate their studios.
The company launched mobile gaming services in 2012 and were awarded the Class 4 Licence by the Malta Gaming Authority the same year.
Evolution entered the American gambling market in 2013 and became the first Live Casino provider to gain New Jersey Preliminary Waiver approval. Their Riga studios became the largest single- site casino operation in Europe. They also started streaming their roulette services directly from a licensed land- based casino in Murcia. Lottomatica Vegas Club Live Casino TV show started live broadcast with live game video feeds from the Riga studios at the same time.
Their immersive Roulette was named ‘Game of the Year’ at the 2014 EGR B2B Awards. They also took home the EGR Awards for ‘Live Casino Software Supplier of the Year’ for the 5th consecutive year in 2014. Evolution opened studios in Malta that year.
The following year proved rather eventful for them. The company introduced an all new Baccarat line- up. They also launched their Caribbean Stud Poker and were once again named ‘Live Casino Supplier of the Year’ at the EGR B2B Awards. Evolution Gaming launched their Dual Play Roulette and the multi- camera immersive Lite service.
In 2016, Evolution launches its 7th European studio in Bucharest and won the EGR ‘Live Casino Supplier of the Year’ for the 7th time.
While the company has gone on to secure many more acquisitions in the run up to 2017, they again secured the EGR ‘Live Casino Supplier of the Year.’