Asia and North America powers Evolution to 38.6% rise in Q1 revenue
Stockholm-listed supplier’s reports 43% year-on-year increase in EBITDA, sending shares up by 10% in today’s trading
Evolution has announced a 38.6% year-on-year (YoY) leap in Q1 2022 revenue as the live casino giant continues to dominate the sector.
Revenue for the first three months of the year jumped to €326.8m (£276m) compared to the €235.8m posted in Q1 2021.
Of the total revenue, live casino represented €264.5m, up from €183.7m recorded in Q1 2021.
RNG accounted for the remaining €62.3m, up from €52.2m in 2020 but only up slight from Q4 2021 when the segment returned €62.9m.
Breaking down Evolution’s revenue by geographical region, Europe (excluding the UK and the Nordics) was the largest revenue-returning area, bringing in €108.8m for the group.
Asia was the second largest region in terms of revenue (€103.4m), while North America took third place with €36.8m.
The UK and the Nordics both generated €21.8m in revenue, with the remaining €34.3m coming from other regions.
Asia was the largest growing region, jumping 94.4% YoY from €53.2m in the first three months of 2021.
The total revenue share from regulated markets for Evolution remained flat at 40%.
Elsewhere, the live casino giant recorded a 43.4% increase in EBITDA from €160.1m to €229.7m, with a corresponding margin rising from 67.9% to 70.3%.
Operating profit grew 46.2% from €141.6m to €207.1m, while total profit for the period amounted to €197.1m.
Martin Carlesund, Evolution CEO, said North America and Asian growth were strong positives for the quarter, while the potential of Latam also piqued his interest.
He said: “In North America we continue to expand all our studios, with Connecticut as the next studio to be launched during 2022. In Asia we also continue to experience good growth, while the more mature European markets are, in general, in slower growth mode – some due to regulatory changes affecting operators.
“However, we still see growth opportunities in Europe. Latam also offers good potential going forward and continues to develop with several markets in discussions regarding regulation of their market for online gaming,” he added.
Carlesund also touch on the impact of Russia’s invasion of Ukraine on the supplier’s operations.
He said: “At the start of the war Evolution had approximately 100 co-workers based in Kyiv. As for now, the war has limited direct financial impact on our business but emotionally it has affected us all. We will naturally continue to follow the development closely.”
Evolution’s share price was up 10.27% at the time of writing to SEK1,004 (£81.98) today, although it is down nearly 40% compared with 12 months ago.