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Interim Report for January-June 2018
[PR] Evolution released today its Interim Report for January-June 2018.
Second quarter of 2018 (Q2 2017)
- Operating revenues increased by 40% to EUR 59.3 million (42.3)
- EBITDA increased by 36% to EUR 26.2 million (19.2), corresponding to a margin of 44.2% (45.5)
- Profit for the period amounted to EUR 20.1 million (14.6)
- Earnings per share amounted to EUR 0.56 (0.41)
January-June 2018 (1H 2017)
- Operating revenues increased by 35% to EUR 110.8 million (82.0)
- EBITDA increased by 33% to EUR 48.1 million (36.3), corresponding to a margin of 43.4% (44.2)
- Profit for the period amounted to EUR 36.7 million (27.4)
- Earnings per share amounted to EUR 1.02 (0.76)
Events during the second quarter of 2018
- Favourable demand for new tables, over 500 expected to be live at year-end
- New customers and preparations for launch of new studio in New Jersey in Q3
- Live Casino Supplier of the Year for the ninth consecutive year
Comments from CEO Martin Carlesund:
I am pleased to be able to sum up a quarter with much new progress, both within the framework of ongoing investments, as well as in ongoing customer processing and marketing. Revenue for the quarter amounted to EUR 59.3 million, corresponding to an increase of 40 percent compared with the second quarter of 2017. EBITDA amounted to EUR 26.2 million with a margin of 44.2 percent, an improvement compared with the start of the year.
As this report is being published, the FIFA World Cup has just ended – and the second quarter was largely characterised by the preparations for this major sporting event, with many new tables in our studios, followed by a high level of activity as the tournament began. We see continued favourable demand for tables even after the World Cup, and expect to have a total of more than 500 in operation at the end of the year. Similar to our historical pattern, we are leveraging our size and utilising our expanded resources for optimum efficiency, with each new table being optimised and delivering more over time.
In addition to our focus on the World Cup during the quarter, we made clear progress with our initiative in New Jersey, with several new customer agreements and activities associated with our new studio in that market. The studio is being built to serve several operators and will initially offer 10 tables with Live American Roulette, Blackjack, Baccarat, Three Card Poker, Ultimate Texas Hold’em and Slingshot Auto Roulette. More games and tables will then be released gradually, including dedicated tables for specific operators. The studio in New Jersey is expected to go live in the third quarter this year.
The regulation of the Swedish market is approaching, and we are very proud to have signed agreements after the end of the quarter, gaining the trust to deliver Live Casino services to both Svenska Spel and ATG. We take a positive view of regulation and look forward to continuing to work with both existing and new customers in Sweden’s new gaming market.
Most of our customers are licensed in a limited number of jurisdictions while operating in a global market. In line with our customers’ geographical spread, our global exposure is also increasing. Against this background we provide, in this report, a clearer picture of where our end users are located. We can affirm that the proportion outside Europe is increasing, and that regulated markets account for about one third.
Towards the end of the quarter, we were again honoured to receive the Live Casino Supplier of the Year award at the annual EGR B2B Awards. This is the ninth consecutive year in which we have brought home the award in this category, proving that we are continuing to strengthen our leadership in an increasingly competitive market. I would particularly like to highlight Lightning Roulette as an example of how we are continuously renewing the Live Casino vertical and are at the absolute forefront of development. Since its launch just a few months ago, Lightning Roulette, which is unique to our platform, has become one of the most popular games in the market.
In connection with the EGR B2B Awards, we were also named the Multi-Channel Supplier of the Year, thanks to our cross-border Dual Play product. During the quarter, we signed agreements for a total of five new Dual Play solutions for casinos in both Europe and the US, thereby strengthening our position as the natural partner for land-based casinos seeking to develop their brands online.
With half of 2018 behind us, I can state that we are continuing to deliver on our ongoing mission to continuously extend the gap between us and our competitors. Evolution’s operations are becoming increasingly global, with over ten years’ experience of delivering the best Live Casino services to both pure online operators and land-based casinos in a growing number of markets. I and all of Evolution’s employees look forward to the second half of the year, in which we will continue to create fantastic Live Casino experiences, both for our customers and their end users.