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Evolution Gaming Revenue Increases 45% to €115.1m in Q1

  • Increased demand for live casino products since the coronavirus outbreak began
  • Net profit for the first quarter increased by 89% to €54.2m ($58.5m)
  • There have been some disruptions to the company's operations in Spain and Georgia
  • Expanding reach to Pennsylvania, Michigan, and South Africa
female dealer holding casino chip behind table
Evolution Gaming’s live casino products are proving popular among operators and players, with revenue for the first quarter up 45.2% compared to the same period last year. [Image: Shutterstock.com]

Live casino games proving popular

Live dealer software provider Evolution Gaming has reported a significant increase in revenue for the first quarter of 2020.

For the first three months of the year, Evolution Gaming’s total revenue amounted to €115.1m ($124.2m). This represents a 45% increase compared to the same period last year. The live dealer provider said it has seen an “increased and strong demand” for its products during this period.

resulted in people making the transition from sports betting to live dealer casino games

One of the main reasons for this growth is a lack of sports betting, which has resulted in people making the transition from sports betting to live dealer casino games. The continued cancellation and postponement of sports events is likely lead to further growth for Evolution Gaming in Q2.

Breakdown of revenue in first quarter

Evolution Gaming experienced growth in all of its geographical markets except for the United Kingdom. In the UK, revenue declined by 20% to €9.9m ($10.7m). The company’s total revenue from Europe increased by 47% to €59.8m ($64.5m).

Revenue from Asian operations increased by more than 100%, rising from €8m ($8.6m) to €20.8m ($22.5m). Revenue from North American sources rose by 54% to €7.1m ($7.6m). Finally, its operations in all other regions improved by 52% up to €11.4m ($12.3m).?

Evolution Gaming’s operating expenses for the quarter increased by 18% to €58m ($62.6m). Naturally, staff costs account for a large portion of these costs, with €33.3m ($36m) spent. In terms of profit, operating profit rose by 89% to €57.1m ($61.6m). Net profit totaled €54.2m ($58.5m).

COVID-19 impact and expansion efforts

Evolution Gaming CEO Martin Carlesund said that despite growth during the first quarter, other aspects of the business have been affected by the coronavirus pandemic. He warned that there are certain challenges the company will be dealing with going into the future as a result of COVID-19.

our studios in Georgia and Spain have been temporarily closed during limited periods

Detailing some of these issues, he said: “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.”

He also touched upon the global presence the company has, extending its reach across the world. The completion date for Evolution Gaming’s planned studio in Pennsylvania has been postponed. However, the plan is still to launch this offering in the Pennsylvania market before the end of 2020.?

The live casino software provider also plans to enter the Michigan market once the state’s casino regulations have been finalized. Evolution Gaming has also secured a national manufacturer license in South Africa.?

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