Evolution Gaming posts 50% increase in profits ahead of studio expansion
Evolution Gaming has outlined significant global growth prospects for its Live Gaming and RNG business units, following a strong start to year trading.
Publishing its Q1 2022 trading update (period ending 31 March), Evolution has registered corporate revenues of €327 million, up 38% on corresponding Q1 2021 results of €236 million.
A breakdown of units saw Evolution’s flagship Live Gaming division register a 44% increase in revenues to €265 million (Q1 2021: €183m) – driven by the increased demand of its games catalogue from new and existing customers.
The exceptional growth of its live gaming unit was supported by its RNG division registering a 2% growth in sales to €62 million – results in line with performance expectations.
Providing a breakdown of geographical performance, Evolution disclosed a near doubling in Asian market revenues to €103 million (Q1 2021: €53m).
Asian growth helped the games developer overcome stagnant performance in the mature markets of the UK and ‘Rest of Europe’ – that recorded no % gains.
Meanwhile, Evolution continues its North American expansion, which registered a 36% increase in revenues to €37 million (Q1 2021: €21m) – positive results as Evolution prepares for further imminent new US state launches.
Group CEO Martin Carlesund commented on performance: “2022 has started very well, and the entertainment and excitement that Live games offer continues to drive new, as well as existing customers to our games. RNG growth of 1.8% year on year pro-forma is in line with our expectations.”
“While structural efforts such as the One-Stop Shop and other cross-sales activities are important elements, at the end of the day the key for improved growth is developing great games for all players.”
“End-user satisfaction is always key and taking us there is not done overnight. The road to success will not be straight-lined but the focus and ambition is clear and I’m convinced that we will reach our growth ambitions over time.
Underlining the continued expansion of its games catalogue across partner platforms, Evolution registered a period EBITDA of €230 million up 43% on 2021 results of €160 million.
Period-operating expenses increased to €119 million (Q1 2021:€94m), with increased costs attributed to the launch of its new Madrid live gaming studio, and with a €7 million outlay directed to the development of new games.
Closing Q1 trading, Evolution declared underlying corporate profits of €197 million, up 50% on corresponding 2021 results of €132 million – helping maintain the firm’s objective “to grow faster than the total global online casino market.”
Carlesund concluded: “We are well on our way into 2022, leaving the first quarter with good delivery and momentum.
“With our 88 new games in 2022 we have shown what thousands and thousands of fantastic Evolution employees can achieve together. Evolution is a workplace where everyone is accepted and respected. Together, we hope for a brighter end of 2022 than the beginning.”