Evolution Gaming growth continues with 45% Q1 revenue increase
Nasdaq-listed live casino firm notes coronavirus has had no “large negative impacts” on global operations
Evolution Gaming has seen revenue rise to €115.1m in Q1 2020, which marks a 45% increase on the same time period last year.
This exponential growth in revenue demonstrates the “continued high demand” for its live casino products, said Evolution in its interim report.
Splitting the revenue geographically, Asia accounted for €20.8m in Q1 2020 after only securing €8m worth of revenue in Q1 2019.
The only region to see a drop in revenue year-on-year was the UK, which fell from €12.4m to €9.9m.
The Nasdaq-listed supplier also saw EBITDA increase by 79% to €64.1m from Q1 2019 to Q1 2020, with profit amounting to €54.2m.
In response to the coronavirus outbreak, CEO Martin Carlesund noted that operations haven’t been negatively impacted due to strategies put in place across the Evolution workforce.
Carlesund said: “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.
“In several of our studios, we operate with fewer tables compared to normal, and our 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.”
Carlesund also detailed Evolution’s global expansion plans, including entry to two US states and the African market.
He said: “The construction of our new studio in Pennsylvania continues but with a postponed timetable due to the Covid-19 situation. However, our aim to launch it before year-end remains. Michigan has accelerated its casino regulation process and we hope that the state soon will be the third regulated market in the US.
“In South Africa, we have received a National Manufacturer licence. The licence means that Evolution is now able to offer its and the subsidiary Ezugi’s products to all licensed gaming operators in South Africa,” he added.
In Q1 2020, Evolution also recorded expenditure of €4.7m for investments in ‘property, plant and equipment’ which relates to new studio space and IT equipment.
Evolution has also increased its headcount year-on-year with 5,865 full-time employees noted by the end of Q1 2020, compared to 4,671 in the same time period last year.
Finally, the Evolution board of directors acquired 330,000 of the company’s own shares in a move which was designed to “improve the capital structure by reducing the capital, and thereby creating added shareholder value”.