Evolution eyes Malta expansion as Q3 revenue rises

Evolution Gaming today reported a 41% revenue rise to €64.3m for Q3 2018, up from €45.7m in the same period last year.

The revenue increase was primarily driven by higher than expected growth in Evolution’s number of gaming tables, with approximately 500 tables live by the end of the quarter.

EBITDA increased by 28% year-on-year (YOY) to €28m as EBITDA margin reached 43.5%, while profit for the quarter amounted to €21.2m, up from €16.8m in Q3 2017.

Also driving growth was the launch of Evolution’s tenth global studio in Atlantic City, New Jersey, which has reportedly “exceeded expectations” in the early stages, as well as a new studio in Tbilisi, Georgia.

Evolution Gaming CEO Martin Carlesund

Evolution CEO Martin Carlesund said the supplier will be looking to drive further expansion by potentially opening a new studio and initiating a recruitment drive in Malta next year.

He said: “For our newly-opened studio in Georgia, we continue to see positive developments with fast growth and a good pace in recruitment.

“Just as in New Jersey, we are only in the starting blocks and a lot remains to be accomplished.

“All in all, we can conclude that we have a year of high investment pace behind us, manifested by the said studios as well as our new studio in Canada.

“When we look upon 2019, we turn our focus to Malta where we evaluate the possibilities for further expansion, potentially via a new studio,” he added.

Evolution’s performance in Nordic and European markets was steady during Q3 but growth has slowed in the UK where “operators are still in the process of adapting to regulatory requirements”.

Evolution’s share price was down 8% in early trading.